@malwaretech You get the option to buy them cheaper than market price. The incentive part is that if you work hard & the company is successful, the options are worth the market price minus the strike price. If you don't work hard, then the stockmarket falls below the strike price and the options are worthless.
If you called your broker & said, buy me IBM at 10cents, he'd say there are no buyers. If IBM grants you options, then IBM will sell you the shares (new issuance).