2

I've been using Gnucash for a while now and I'm starting to feel like an accountant. :) Anyway, I've been interested in trying to map out employee stock option grants for a while to form a more complete financial view of all my investments.

I finally took a stab at it using the "stock" account type. It works really well to calculate the "real time" value of a number of shares. However, I realized quickly that I can't fathom a way to capture the strike price of the options (price to buy them at). This is a fixed value with which I purchase the shares from the company and needs to be subtracted from the "real time" price to get the actual gain at any given point in time.

Anyway, I'm guessing that most people who track their employee stock option grants probably don't track the actual options that they have. They probably only enter something into Gnucash when they perform a cashless execution. I'd like to be able to see my potential gains for shares that are "in the money", so to speak. If anyone has a suggestion, I'm all ears.

1

One vaguely similar problem which I solved was how to track vacation hours from my work. I decided to start doing this in part because the hours are mine, and should I ever leave the company they would be paid out at my salary rate.

The solution I came up with was to repurpose the "Accounts Receivable" heading (which I was never going to use otherwise) and create a child "Vacation" stock account with an associated dummy commodity. Every time I accrue vacation, I track it by purchasing hours (shares) from the Income:Salary account at the current hourly rate. Then when I actually take vacation at work, I track this by selling hours and depositing it to checking from the proceeds of the sale, rather than from Salary. My Vacation commodity is rather boring, it only changes value whenever I get a raise, but the analogy to your situation still holds.

So in this context, perhaps your could track your options as "Unrealized Income" from work in a placeholder account, but which would be linked to the actual commodity. Then when you exercise the options, you can purchase shares from your placeholder account at the strike price.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.