I write about employee stock options and equity compensation in a way that is easy to understand.
Let’s take a look at how taxes play a role in the most common wealth transfer strategies, as well as what steps you can take now to incorporate your equity compensation into your estate plan.
For most people, tax time can be a headache—though for earners with traditional compensation packages, it can at least be fairly predictable (W-2 wages, withheld taxes, 401(k) contribution deductions, etc.). If you’re a business owner, partner, or investor in a...
Incentive stock options (ISOs) are known far and wide for their preferential tax treatment on the total recognized gain—as long as you meet the holding period requirements for a qualified sale.
If your employer provides equity compensation as a part of its benefits package, you can expect to receive a wealth of information about the program. If you’re new to the subject, the amount of information and the details can be daunting, especially if you’re not yet familiar with the basics. To help with that, let’s take a step back and view the big picture on equity compensation.
Deciding when to exercise, hold, and sell your incentive stock options (ISOs) is complicated, requiring you to manage several simultaneous financial variables, all at the same time. These include: Prices: Especially the strike price, the share price at exercise, and...
When it comes to evaluating strategies to exercise your Non-Qualified Stock Options (NQSOs), what is your best plan of attack? Do you: Exercise and sell all your NQSOs immediately, cashing out the full proceeds? Exercise your NQSOs and hold shares of stock, hoping the stock price will go up? Or, leave your NQSOs unexercised and hope the stock price will go up? If you anticipate a higher stock price in the future…
Concentration risk is an issue of interest to nearly every employee, executive, business owner, or anyone else holding company stock and employee stock options. What is concentration risk? It’s loosely defined as holding a significant portion of wealth in a single stock, which could result in an inappropriately diversified portfolio. Unfortunately, the ambiguity associated
A performance award is a grant of company stock or stock units, typically tied to a pre-determined metric or goal that is specific to the recipient or award itself. More often than not, the recipient is an executive. Interchangeably referred
If you’re an executive or an employee with significant equity in your company from employee stock options, restricted stock units, or other stock grants, you may have a continual need to sell stock. However, SEC regulations, company insider trading policies and fears of allegations of insider trading may prevent proper diversification of holdings. Fortunately for executives and insiders, Rule 10b5-1 trading plans can allow flexibility to sell stock without regard to limitations imposed by company insider trading policies while complying with SEC regulations. Such plans also provide an affirmative defense to allegations of insider trading.
If your employer has granted you incentive stock options (ISOs), you’ve likely spent time researching the tax treatment. If so, you’ve probably read about the alternative minimum tax (AMT), and qualifying and disqualifying dispositions. Perhaps the complication has left you wondering: What does this mean to me as a taxpayer?
Whether you’re just getting started or expanding your knowledge, here are some resources to get you started.
Understand what you have, what you should consider, and what ultimately matters to you.
I write about equity compensation and employee stock options in a way that is easy to understand.
Understand what you have, what you should consider, and what ultimately matters to you.
Get the Ultimate Guide to Incentive Stock Options to better understand your equity compensation.
