Generally taxable as ordinary income when the option is exercised, NQSOs are considered the easier of the two types of employee stock options.
Often considered the simplest form of equity compensation, restricted stock is commonly taxable when it vests and removes some of the decision-making from the employee recipient.
More complicated than their non-qualified stock options cousin, ISOs may receive preferential long-term capital gains tax treatment if certain holding periods are met. However, you may need to address the alternative minimum tax.
ESPPs are a convenient way to purchase company stock through payroll deductions. Some plans will allow for additional benefits such as a discount and a lookback provision, making a good ESPP potentially too good to pass up.
The alternative minimum tax is charged when you exercise and hold incentive stock options. Good planning with help from Zajac Group will account for how much you pay and when you may get it back via an AMT credit.
There are many types of equity that you may have, and good planning requires the coordination of them all, including founders shares, stock owned outright, restricted shares, performance shares, and phantom stock.