Consider this fairly typical situation. Four years ago, employee Emma was granted an incentive stock option (ISO) to purchase 100,000 shares with an exercise price of $0.86 per share. Emma’s award is fully-vested and she...more
In this four-part series, we explore several of the most commonly-considered option program enhancements emerging companies may consider as they strive to make their stock option programs as compelling as possible to recruit...more
In the first part of this four-part series, we provided a high-level summary of stock option basics. In this second installment, we build on those basics and begin our exploration of stock option program “enhancements” by...more
This blog is the first post in a four-part series. Part I will provide a high-level summary of stock option basics....more
The 2017 Tax Cuts and Jobs Act (TCJA) significantly amended Internal Revenue Code Section 162(m), which generally disallows the deduction of compensation in excess of $1 million paid by a “publicly held corporation” to a...more
12/18/2019
/ Acquisitions ,
Comment Period ,
Compensation & Benefits ,
Covered Employees ,
Executive Compensation ,
Grandfathering Rules ,
Internal Revenue Code (IRC) ,
IRS ,
Mergers ,
Proposed Regulation ,
Publicly-Traded Companies ,
Section 162(m) ,
Section 409A ,
Tax Cuts and Jobs Act ,
Vesting
From time to time, and primarily when the economy is booming, allowing stock options to be “early exercised” - that is, allowing options to be exercised before they are vested - becomes in vogue. We are in one of those times....more
5/24/2019
/ Alternative Minimum Tax ,
Capital Gains ,
Corporate Governance ,
Exercise of an Option ,
Holding Periods ,
Incentive Stock Options ,
Income Taxes ,
Qualified Small Business Stock ,
Stock Options ,
Tax Planning ,
Vesting