If you are on the receiving end of equity compensation in the form of employee stock options or restricted stock, it’s easy to get excited about the prospects of an increasing stock price and how that can positively impact your financial future. Company stock can offer non-financial benefits as well, like making you feel invested in the company, like a team player, and that all your hard work is worth it.
When you exercise your employee stock options, you may want to consider one of the following options to implement the exercise: A cash exercise, or a cashless exercise. This is not an exhaustive list of options. You may run across other terms such as sell-to-cover, same-day sale, or share withholding. While some of these terms are interchangeable and result in a similar outcome, you should check your plan details prior to implementing any specific exercise strategy.
Receiving employee stock options from your employer is great, as it indicates that your company sincerely values you. They want to keep you, and keep you happy! Furthermore, stock options can be a fantastic opportunity to generate wealth. However, knowing the right moves to maximize this complicated form of equity compensation is not easy.
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.
