We’re rewarding the question askers & reputations are being recalculated! Read more.

Questions tagged [employee-stock-options]

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

Filter by
Sorted by
Tagged with
20
votes
3answers
88k views

What typically happens to unvested stock during an acquisition?

I work for a publicly traded company that was acquired by another publicly traded company. I also own shares of "restricted stock units" for my company. All of my shares are scheduled to vest far ...
13
votes
1answer
1k views

Is there a reason to exercise a stock option as soon as it vests?

Background: I am currently employed by a start-up that, so far, is doing really well. As part of my contract, I have stock options that will come available on a typical vesting schedule. A quarter of ...
7
votes
4answers
335 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 ...
12
votes
5answers
2k views

What should I do with the stock from my Employee Stock Purchase Plan?

I've got an employee stock purchase plan program. The details are a little tricksy, but I basically get to buy about 2500 shares of company stock at something like $2.33/share... and the stock has ...
2
votes
1answer
222 views

AMT stock option scenario

So I have some ISO stock options (yeah) and three kids in college (boo) so I'm trying figure out the best tax strategy. I was hoping someone help me through the following scenario Strike Price: $10, ...
2
votes
2answers
283 views

Does AMT affect cost basis of future capital gains?

Suppose I exercise 10k stock options for $1/share, and fair-market value is $2/share. Normally, taxes are deferred until when I sell them. And when I sell, the basis for capital gains is $1/share. ...
15
votes
5answers
2k views

Confused about employee stock options: How do I afford these?

I'm confused about stock options. The numbers in the following story are fictional because I'm keeping the actual offer confidential. This is an American private company with a promising future: ...
10
votes
3answers
21k views

Do the tax consequences make it worth it for me to hold ESPP stock?

Disclaimer — I've read What should I do with the stock from my Employee Stock Purchase Plan? and the answers seem to be both slightly wrong (from what I know) and contradictory, which is why I ...
4
votes
1answer
2k 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 ...
4
votes
1answer
581 views

RSU taxation: when am I taxed, and how much?

My company has given me RSUs that will vest this year. I've done some searching on the web and can only find vague information about taxation of these. One site says that they're taxed when they're ...
3
votes
1answer
2k views

Can a self-directed IRA hold non-qualified stock options (NSO) with a vesting period, without being considered self-dealing?

I work for a startup company. They are about to go through their FMV evaluation and funding round, at which point I will be granted my options. I talked to them and said I would like the ability to ...
2
votes
1answer
280 views

Exercise ISO or NSO in solo 401k?

I have a solo 401k. My employer does not offer one. What is the correct way to exercise employee stock options with capital from the 401k to make the resulting stock an asset of the 401k? Ideally ...
2
votes
1answer
970 views

What is the total underpayment penalty for not paying AMT immediately?

I exercised options (ISOs) in a startup so I'll have to pay the alternative minimum tax (AMT). The amount is greater than $1000. (EDIT: the AMT will certainly be larger than my regular income) What ...
1
vote
1answer
129 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 ...