Insights

Being part of an initial public offering, or IPO, is an exciting time. This is when a private company goes through the process of getting listed on a publicly-traded exchange. Where shareholders may have previously only been able to buy or sell the company’s equity in private deals (if allowed by the company), an IPO...

Restricted stock and employee stock options are commonly-awarded types of equity compensation that you may receive as part of your overall pay from your employer. While both restricted stock and employee stock options are forms of equity, they each have particular features and are treated very differently from a tax perspective. Restricted stock units or...

Restricted stock is often considered the simplest type of equity compensation to understand. And relative to other types of equity you could receive, this might be true. But that doesn’t mean managing restricted stock is easy. Restricted stock gets complicated thanks to factors such as double triggers, tax withholding (or lack thereof), and sell-to-cover or...

Restricted stock units are often considered the most straightforward type of equity compensation. Unlike other ways that employees can receive shares of company stock, restricted stock units (or RSUs) often have a largely automated process for granting, vesting, and taxation. Once vested and settled, the fair market value of the RSUs is taxed and the...

If you work for a private company and receive restricted stock units as part of your compensation package, that equity compensation may have a double-trigger provision. While not all restricted stock units, or RSUs, come with this feature, it’s an important element to understand. What Are Double-Trigger RSUs? Double-trigger restricted stock units are those that...

If you are on the receiving end of an equity compensation award, you may be overwhelmed by the amount of new information, jargon, and rules coming your way. You might also feel uncertain about how new equity grants and vesting schedules should fit into your existing financial plan. To begin, you can start by focusing...

If you have equity compensation, you may wonder how the value of the shares you hold may influence your tax bill — or how vesting, exercising, and selling your shares may impact the value of your award. The type of equity compensation matters when looking at these questions. When you have incentive stock options, the...

Equity compensation and employee stock benefits can be a great tool for employers to attract and retain key talent. These benefits can be equally attractive for employees, because they fast-track your ability to grow wealth if the company’s stock price rises when you can hold and sell shares. But that’s a big “if.” Stock prices...

If you have equity compensation as part of your benefits package, you’ve likely spent time considering when it might be best to take action and maximize the value of these potential assets. Deciding the right time to take action is complicated by several factors, including your personal goals and objectives, the rules of your employer’s...

Access to an employee stock purchase plan that offers a lookback provision and a discount is often a great benefit for employees. If you can afford to contribute, these two features may allow you to benefit from an increasing stock price while potentially receiving downside protection (assuming you sell your shares immediately after they are...