I write about employee stock options and equity compensation in a way that is easy to understand.
An employee stock purchase plan, or ESPP, can provide employees of a company a vehicle through which to purchase that company’s stock. This is usually done through automated payroll deductions, which makes the system convenient, and employers may offer added benefits...
You might not give much thought to the equity compensation you receive throughout the year (until you’re forced to take action with it). But even if you do have a long-term plan in mind, it’s smart to pause periodically and review the overall strategy. The end of the...
Before you do anything with your incentive stock options, you need to get clear on how exercising those ISOs could affect your assets and your cash flow, and what will it cost you in terms of real money. You need to know the cost of exercising your options, for...
Restricted stock units (RSUs) might seem relatively easy to manage once they vest, especially when compared to the potential complexity of vested non-qualified and incentive stock options. RSUs look straightforward because your options can seem limited, meaning you...
If you have non-qualified stock options, you’ve likely spent time researching when and how you’ll face taxes for them. As a general rule, you will be subject to ordinary income tax on the profit you make when you exercise non-qualified options. Being taxed when you...
The alternative minimum tax (AMT) acts as a sort of parallel tax system to the regular federal income tax system. For taxpayers, this means they need to calculate their income twice: once under the regular tax rules and a second time under AMT. After running this...
The choice of when to exercise your incentive stock options can be a difficult one, with serious implications for financial planning and taxes. When your company is still pre-IPO, that opens up an entirely separate set of concerns that you may need to be aware of. The issues associated with pre-IPO incentive stock options (ISOs) are particularly relevant now, as early-stage companies increasingly find private funding sources and delay the date of their IPO. As the length of time between startup and IPO increases, more and more employees are facing the question of the costs and benefits of pre-IPO ISO exercise.
Incentive stock options (ISOs) are a form of compensation distributed by a company to their employees. Typically, companies use incentive stock options as a vehicle to retain top employees, reward specific milestones or successes or as an incentive when hiring new...
An employee stock purchase plan is a compensation tool that may allow you to purchase shares of company stock through convenient payroll deductions. Employee stock purchase plans, or ESPPs, allow you to buy company stock at a discount or a favorable price. Through the...
If you have incentive stock options, you’ve likely heard of -- and perhaps already paid -- the alternative minimum tax. This is the tax due in the years you exercise and hold incentive stock options, or ISOs. You might also be entitled to an AMT tax credit if that’s...
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.
