ownership of company given to employee, generally in start-ups instead of giving cash rewards. Also used by listed organisations as a mechanism for employee retentionship

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55 views

Is it possible to sell private company stock options to buy below 409A (FMV) price?

Suppose that someone is an employee at a company, and their exercise price on ISOs is $5. The last round of 409A valuation caused it to spike up to $500 per share (that is what investors were paying ...
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2answers
75 views

Approximate IT company valuation (to proximate stock options value)

As part of my offer package I'm offered stock options in a private company that was self sufficient for 8 years and almost didn't take any funding. For the last 3-4 years revenue numbers have been ...
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1answer
62 views

stock option grant being cancelled because strike price greater than FMV and replaced with a new grant at a higher strike price

I've been working at a startup for a few months and was granted stock options as part of my compensation package. The company is not public. The grant has been approved by the board and has already ...
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0answers
35 views

What phased out tax benefits should I be aware of (aka how much stock should I sell)?

I am married filing jointly in CA. I own a chunk of stock (~300k on a basis of 7k) in a company I formerly worked for that has recently IPOd. I'd like to diversify my holdings in a tax-smart manner. ...
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40 views

Selling employee stock options now and waiting for Long Term Capital Gains or selling later

I've got some options that I'm looking to exercise and am trying to figure the best way to go about it. I always thought that exercising options and then waiting for long-term capital gains was the ...
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1answer
131 views

Historically how do share prices perform after mass selling after an employee reward scheme?

Tesco in the UK are about to award a 5% turn around bonus in shares to their staff with the option of keeping them or selling them straight away. It's likely most of the employees will sell them ...
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1answer
50 views

Will I lose the AMT tax I paid if my startup fails?

I recently parted ways with a startup. I was granted options and now must exercise them. When I exercise them, I will incur the Alternative Minimum Tax (AMT). If the company fails and goes bankrupt,...
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2answers
112 views

Employer reported ESPP ordinary income on wrong year's W-2

I sold some Employee Stock Purchase Plan shares on 12/31/2014. As far as I understand, the ordinary income portion of the sale should have been reported on my 2014 Form W-2 from my employer but was ...
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87 views

Understanding AOL merger in respect to employee RSUs

I'm trying to understand what might happened to a company's employee time based RSUs in case of a merger. To do that I'm looking at what happened with the AOL merger: http://ir.aol.com/mobile.view?c=...
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2answers
136 views

Is it best to exercise options shares when they vest, or wait

For my situation, is it better for me to exercise all my option shares whenever they vest (are exercisable), or is there any advantage to waiting? What are the pros and cons? What is the tax aspect, ...
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2answers
69 views

Stock options: what happens if I leave a company and then an acquisition is finalized?

If this situation occurs and I have 75% of my shares vested and I have a 60 day window to exercise the vested options upon termination (my choice not company's choice) can I reap the financial ...
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2answers
207 views

Should I accept shares as payment?

My possible future employer offered to pay me in shares of the startup I would join. He dropped sentences like "brutto equals netto" and "We can pay you more in shares than in cash". Obviously there ...
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1answer
31 views

Should I early exercise unvested ISOs when the FMV is above the strike price?

I have unvested ISOs from a job I started this year, and recent revisions to our policies have given employees the ability to early-exercise their options. However, it's been several months since my ...
4
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0answers
275 views

I am being forced to sell my stock in a private company after a Series B round, because I am not an accredited investor. Is this legal? [closed]

I am being forced to sell my stock in a private company after a Series B structured as a merger, because I am not an accredited investor. Is this legal? I exercised my stock options at a private ...
3
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2answers
114 views

Non Qualifying Stock Option offered by employer

I currently have an unpaid offer from a tech company, however, they have mentioned the following in the offer letter. Since, I am not aware of stock terminology, if someone can explain to me what this ...
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1answer
105 views

Former public employer that we have options in just sold

My wife and I have some vested options in Zulily from when she used to work there. The stock has been very poor so far, but this morning it was announced they are selling to QVC and the price show up ...
3
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1answer
182 views

Employee Stock Option Shares - What happens when the company gets acquired

The company I worked for 20 years ago had given me stock options. When I resigned from the company, I had purchased the options that had vested with me. Subsequently bonus shares were allotted and my ...
3
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1answer
130 views

What should I do with my vested stocks from employer

What should I do with my vested shares from current employer if I decide to leave my current organization. Another set of shares are would normally vest during my FMLA/Maternity leave and I plan to ...
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0answers
114 views

Mass RSU grants vesting — should I worry about the stock price?

My company was acquired almost a year ago. In the acquisition, most employees received RSU grants which vested on a 1 year cliff. These RSUs are managed through Etrade. My options for tax purposes ...
2
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1answer
48 views

Transfer of stock of non-public company after vesting

Suppose an employee of a non-public company has "some" stock options. Can that person, after vesting, generally transfer the ownership of some of those (exercised) shares to another party? I want to ...
2
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0answers
123 views

What Capital Gains are owed for a Non-resident owning stock in US C corporation when it is acquired?

Would a non-resident alien (no connection to the US apart from the company) owning founder/CEO stock (not stock options) of a private US corporation have to pay capital gains tax in the event that the ...
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1answer
72 views

What happens to personal data I disclose for joining an employee stock plan?

My employer has offered me to participate in a stock incentive program wherein I will receive a certain amount of stock in their American parent corporation on the (ostensibly) sole condition that I ...
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1answer
231 views

Tax liability for stocks vested for a H1B visa holder

I got the shares of a company as part of the employee stock options program when I was associated with the company when I was living in India. I moved to USA an year ago on H1B visa. My company got ...
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2answers
107 views

Equity As Part of Compensation

If a private (one owner) LLC that was recently acquired by a private investment company offers "a grant of employee incentive equity in the company in the form of Class M units representing x.xx% of ...
2
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1answer
147 views

How to calculate and claim AMT credit

Suppose I am in California, and I want to try to roughly calculate the AMT i would owe as well as how much i can get back each year for ISO that i plan to hold for many years. Am i doing this right? ...
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1answer
1k views

Are companies like EquityZen legitimate and useful?

There are a list of companies claiming to provide liquidation for employees who have ISOs in private startups but don't have the means to exercise them (because of the ridiculous amount of phantom tax ...
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1answer
135 views

How is Company's Stock option exercise price calculated ?

My wife's company went public last year and we got few stock options with them at the price of $2 She has 500 stocks vested at this point and lock out period has opened up. Current company stock ...
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3answers
773 views

Why share prices of a company dont rise every other friday when company buys shares for its own employees

Every second Friday, when an employer gives out paycheques to its employees, some employers also give company shares as part of every paycheque (ESOP). Now, quite a few big employers with many many ...
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1answer
54 views

Qualified Stock Options purtchased through my Roth IRA

I have qualified stock options for the company I work for, and want to have them paid for out of my Roth IRA. Can I do this?
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2answers
71 views

Common Stock Options Value

Definitely related to this: Job Offer - Explain Stock Options [US] This is the language of the employment contract: At the outset of your employment you will be provided with an initial grant of ...
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1answer
92 views

question about early exercise of a NQSO

Hypothetical scenario: 10k option grant size the grant price (and FMV/409a valuation at grant time) is $1.00 assume $2.00 FMV at time of exercise/purchase If these options are early exercised (and ...
2
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1answer
98 views

Tracking down forgotten brokerage account

My friend worked at Home Depot for several years during the early 1980s and participated in the employee stock investment program with 5% of his paycheck. His employment there ended abruptly upon ...
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4answers
434 views

Is my employee stock purchase plan a risk free investment?

My company offers an employee stock purchase plan with two 6 month periods. At the end of the period I buy the company stock at a 15% discount on the lower of the price at the start of the period and ...
2
votes
1answer
225 views

How can I reduce my tax liability on proceeds from the sale of a company?

My (Canadian) company is about to be sold and as one of the first employees I'm expecting a significant payout from options (e.g. $2M !). That sounds like an incredible amount of money, but this is ...
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3answers
84 views

Stock Option Value correlated to net worth of company

If a year ago a company issued stock options at a $5 exercise price per share, but today they issued them at a $2.50 exercise price per share, does that mean the company has been de-valued by 50%, or ...
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1answer
1k views

How does AMT/state taxes work for stock options in California?

I'd like to know how to roughly calculate tax for stock options, for the following fictitious scenario: Suppose Little Susie joined a rare private company in California as a normal employee, and ...
4
votes
1answer
237 views

I am a US citizen. Can I gift stock options to my parents in India?

I am a US citizen. Can I gift some stock options to my parents in India? If this is possible, could you point me to a page or document showing all things that needs to be done legally at both US and ...
1
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1answer
85 views

What are non-qualified stock options?

Most material out there on the internet assumes I already know some basics about stock, but I work for a US-company in the UK, while being from another EU-country. Last month I've received this e-mail ...
4
votes
1answer
156 views

Proving sale of stock is not short-term

Here is the scenario I am faced. I've transferred DSPP stock from my former employer's stock transfer company (Computershare) to Etrade a few weeks ago. These stocks are from 2010 and 2011. I ...
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2answers
569 views

Early Exercise and 83(b) Election

I am a long-term employee at a growing start up. I have a significant amount of non-qualified stock options, at very low strike price, fully vested and can be exercised at any time.(approx 1-2% ...
2
votes
1answer
276 views

Lump Sum Investing vs. Dollar Cost Averaging (as a Long Term Investor)

My company has an employee stock program in which employees put a percentage of their paycheck into the company for a period of time, after which they can purchase shares at the lower of the start and ...
4
votes
2answers
144 views

How to flip my options?

I was recently let go from my company due to a reduction in force, and I have received a letter saying I have vested options available for exercising. Although I would like to, I cannot afford to ...
6
votes
4answers
211 views

Job Offer - Explain Stock Options [US]

I just got a job offer that I intend to accept, and part of the benefits explanation says, Pending formal approval of the [Company Name Redacted] Board of Directors’ compensation committee, your ...
5
votes
1answer
617 views

Deciding between Employee Stock Option and Restricted Stock

The Company I am currently working with, as part of a reward program awarded me 500 stock options and given me an option to choose them either as Employee Stock Option Restricted Stock Or as a ...
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1answer
297 views

Standardized loan options to purchase employee stock options

I am curious whether there are standardized loans (kind of like margin loans) that are issued to purchase employee stock options. E.g. let's say I have little or no cash available but have 10,000 ...
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2answers
233 views

Is there a simple strategy of selling stock over a period of time?

I've often read a simple strategy of buying stocks or funds over a period of time: spread it over time with fixed amount of dollar in each period. Since the price fluctuates, fixed dollar amount means ...
1
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3answers
664 views

How does 83b election work when paying fair market value at time of grant?

After purchasing restricted stock in a company, so that the amount paid for the stock is exactly equal to its fair market value at the time of purchase, can you file an 83b election at that time? If ...
4
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1answer
1k views

Taxes when exercising stock options in a privately held startup

Let's say I currently have the right to exercise some employee stock options (ISO) at a certain strike price. I have add these options for more than a year. I read that the AMT tax applies on the ...
14
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2answers
2k views

As an employee, when is it inappropriate to request to see your young/startup company's financial statements?

If you work for a young company, equity in the form of restricted stock or options is often a form of compensation and a way to keep you aligned with the company's goals. But as a new employee you ...
2
votes
1answer
490 views

Does the section 1202 qualified small business stock reduce New York, Illinois, or California taxable income?

Say I sold a small amount of stock that qualifies for section 1202. Does this reduce my New York taxable income, or just the federal capital gains amount?