The enactment of Internal Revenue Code (the “Code”) Section 409A has resulted in significant challenges for private companies that award employee stock options. Under the final Treasury regulations, stock options that are awarded with an exercise price less than the fair market value of the underlying stock on the date of grant (“discounted stock options”) constitute deferred compensation and will typically result in adverse tax consequences to the option holder and tax withholding responsibility for the awarding company.
Please see full publication below for more information.
