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
2
votes
1answer
152 views

Can Directors issue themselves shares during raise?

I was wondering if it is legal for company directors that also work and operate the business to gift themselves shares during a capital raise in order to retain their controlling interest in the ...
2
votes
0answers
80 views

AMT ISO deferrals for nonimmigrant. Sold shares after leaving US

I lived in the US from 2013 and 2016 on an E-3 nonimmigrant visa. As part of my full-time employment contract, I was granted ISO shares in a pre-IPO company. I exercised most of the vested shares in ...
0
votes
1answer
54 views

Non-qualified stock options tax optimization strategy

I'm trying to understand the best strategy for reducing tax liability with non-qualified stock options. Assuming the stock price will only ever increase Exercise all newly vested options as soon as ...
0
votes
0answers
10 views

non qualified stock options long term capital gains rate vest timeline requirement

I've read that for ISOs to get a long term gain rate you need: The options to have vested at least two years ago The option was exercised at least one year ago For NQ/NSO, I've read that 2. is ...
2
votes
1answer
210 views

If my ISOs are converted to NSOs, do I still have 90 days to exercise my vested options as ISOs?

Let's say I have a bunch of incentive stock options (ISOs) in a company that have vested but I have not exercised yet. If I were to leave the company, I have 90 days to exercise them with ISO tax ...
0
votes
1answer
39 views

Where are RSUs issued from?

Beginner here. Let us say, I join some company X. They offer me 400 stocks over 4 years of vesting period. Similar to me, there will be hundreds of employees who will be joining everyday. Doing a ...
0
votes
0answers
35 views

Are employee stock options the same as warrants?

What's the difference between employee stock options and warrants? From my understanding, both of them are almost the same: both are issued by the company, and both dilute the existing shares when ...
1
vote
0answers
26 views

How to distinguish insider purchases from stock option exercises?

I've read that large insider stock purchases are considered a good confidence signal for its near future. But, as I understand, the SEC reports about insider purchases may also include stock option ...
3
votes
1answer
94 views

US Tax implications? Bought stock options, paid AMT, company acquired at a loss, options worthless

Scenario (numbers are for illustrative purposes only): 2017: I exercised options when I left my former employer (startup, not public). Exercised 100% of 10,000 ISOs, common stock. At a strike price of ...
2
votes
1answer
118 views

Why are stock options named as they are?

Why are ISO stock options termed "statutory"? Because they are defined by some sort of statute? If so, then what is the statute? Similarly, why are ISOs termed "incentive" stock options whereas NQOs ...
0
votes
0answers
65 views

Incorrect amount of shares on a 83(b) election form

My question is about a 83(b) election form during early exercise of ISO. I've worked in a company for quite some time and was awarded ISO in 2017: 50k shares at a strike price of $0.02c. A year later ...
1
vote
1answer
80 views

If employees exercise options that they are given by the company, will that increase the number of outstanding shares?

Question is simple If employees exercise options that they are given by the company, will that increase the number of outstanding shares? If yes why and if no why.
2
votes
1answer
97 views

Are there risks to having money in an ESPP if the company fails before the purchase date?

I work for a company that offers an ESPP. Employees can put money toward the plan throughout the first half of the year, and it is converted to stock at a 15% discount at the end of Q2. Stock can be ...
54
votes
5answers
14k views

How can I sell my shares in a privately-owned company I used to be employed by?

Basically, I was a software developer at a company and I was issued some stock options early on, before the company grew significantly. The company then hired a CEO who pledged to take the company ...
3
votes
9answers
547 views

Are stock options worth as much as shares?

I was undergoing salary increase negotiations (after a year) recently and it was decided a percentage of my salary was to be paid in shares. However, when the offer came, I noticed I would be getting ...
2
votes
0answers
41 views

S Corp Options Exercise Tax Benefits

I have options to purchase stock in a S Corp. Is there any tax advantage to exercising those options at least one year prior to a sale of the company for capital gains tax purposes or does concept not ...
1
vote
1answer
34 views

IRS CP2000 for Company Retention Stock Options

I was granted company restricted stock with a vesting period of 4 years. I was under the impression that upon vesting, the stock is taxed and that's all I owe. I could then sell the stock and that ...
1
vote
2answers
160 views

How do shares work when a startup is acquired?

I'm trying to estimate the value of stock options for a startup company which might get acquired in the near future. The problem is that I don't know how to incorporate the shares into the formula. ...
1
vote
1answer
106 views

Weighing unvested RSU's against stock options in a job offer

I currently have unvested restricted stock units with my employer. It's a very stable publicly-traded company. I received a job offer from a private company hoping to IPO in the next few years and ...
2
votes
0answers
95 views

Borrowing or raising funds against ISOs

I have some ISOs that are exercised (early exercised/bought) from two different companies I worked at. Their current values are around $15k each. These amounts aren't enough to transact with ...
6
votes
2answers
306 views

What are the most common partner equity distribution for startups?

Background I'm doing some due diligence regarding a US registered (Delaware C-corp) tech startup in Europe, where the founders are located and living in the EU. Although the business idea is very ...
2
votes
1answer
111 views

ISO exercise limit before triggering AMT

With recent 2018 changes to AMT, I wanted to understand how much ISO options can I exercise without making a material difference in AMT Scenario Current income 200k Claiming standard deduction for ...
4
votes
1answer
169 views

Purchase Stock but cannot pay AMT

I was released by my company and I had to purchase my ISO's within 60 days of leaving the company or lose them. The issue is to purchase them would mean around a $1.2m AMT & State Tax Bill next ...
2
votes
1answer
171 views

Can an employee be paid 100% in stock

Can an employee of a publicly listed company (Google, Facebook, Amazon,...) ask to get paid 100% in non-vesting stocks? If so, would the employee be able to defer paying taxes until he/she sells the ...
1
vote
0answers
28 views

Optimal allocation to different employer plans to reduce tax bill in current year

I am a canadian citizen that work for a canadian employer and this is how my allocation to the various employer provided plans look. I read that I am required to pay taxes on the EPSP. Can someone ...
0
votes
0answers
47 views

ICO token vesting if I quit

I am part of a post-ICO company that awards me tokens as part of compensation. My employment contract only mentions that x amount of tokens would be vested over y years with no cliff/any other vesting ...
4
votes
2answers
169 views

Incentive stock options, tax lots, and long-term capital gains

I have shares of a company I got from exercising before the company went public. Some shares I've held for less than a year, some for more. I exercised all the options after holding them for a year. ...
0
votes
1answer
66 views

Executing vested options : How much tax I need to pay

I am working at a startup in California, USA and I was given some options of the type ISO, with a four year vesting period. Very soon, I will complete one year and I would like to execute 1/4th of the ...
1
vote
0answers
28 views

Canadian citizen, working for a US-based company in Toronto. How will exercising my stock options work in terms of the IRS and the CRA?

I work for a US-based company, but in their Toronto, Canada offices. On a monthly basis, I receive some amount of stock options in the Private corporation, which is based in the USA. I can exercise ...
3
votes
2answers
680 views

Offer Letter: What does “option to purchase” shares mean?

This is the first offer I have got. I do not understand a word about stock options. Please explain this to me: Subject to the approval of the Company’s Board of Directors or its Compensation ...
1
vote
1answer
516 views

Why is there a significant disparity between 409A valuation and fair market value?

I'm at an interesting juncture where I have the opportunity to exercise some ISOs at a startup, and I'm somewhat confused at the disparity between the two valuations. In my case, I can exercise my ...
3
votes
0answers
145 views

Accounting for monthly vested stock options as compenstation in GnuCash

I am working for a company that has recently gone public. Now I see a monthly accumulation of options vesting every month. I would like to account for these options as compensation in my accounts. ...
2
votes
1answer
130 views

Is my 83(b) election still valid?

In 2016 I filed an 83(b) election for some ISOs I received as part of my employee compensation. I did not completely understand the 83(b) election when I made it, I still don't to be honest. There are ...
0
votes
1answer
111 views

Best financial model to proportionally distribute the company's income to all employees? [closed]

I plan to start a project of something "innovative". And among some of the parts of the project that I'm thinking about, it's in the term of how money (profits) should be distributed. The truth is, I ...
3
votes
3answers
559 views

How to know FMV of ISOs?

I'm researching when is best to purchase ISOs I've been vesting at a private venture-backed startup. My understanding is that when I exercise, AMT will trigger and I will have to pay those taxes based ...
2
votes
1answer
162 views

How many times can I exercise a stock option?

I was granted an employee stock option about two years ago. Almost half of it has vested. The company I am with is doing very well. Every month a little more of my option vests. I have not exercised ...
0
votes
3answers
137 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 ...
2
votes
0answers
122 views

Stock Options in Exchange for Salary

I received an offer letter with with the option to convert part of the salary to stock options as per the below table. Base salary is ₪33K/month (Israeli Shekel). Be aware of '₪' vs '$' in some ...
1
vote
0answers
207 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=...
6
votes
2answers
818 views

How can I estimate the value of private stock behind employee stock options?

I'm considering an offer with generous options. I have pretty high risk tolerance, so I'm just trying to estimate the expected value of the options. To the extent possible, I want to base this on the ...
2
votes
2answers
196 views

I sold my earned incentive stock options back to my employer - how is the money taxed?

I recently sold my vested incentive stock-options back to my employer (i.e. so rather than having to spend $20,000 of my own money to exercise my options and make very little paper gain initially, I ...
1
vote
2answers
130 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 ...
0
votes
1answer
44 views

How does reporting AMT for shares later sold as long-term cap gain work? [duplicate]

I'm unsurprisingly confused: If I exercise ISOs in Jan 2017 and sell them in Feb 2018, how is income reported for AMT purposes and profit reported for cap gain purposes -- are BOTH reported on my ...
5
votes
1answer
229 views

Employee stock option plan with undefined vesting?

As an employee, I have received stock options from my company. However, about vesting, it says only that the board determines it. There is no further info, no vesting period is stated, no further ...
2
votes
1answer
172 views

Is there anything to do immediately after exercising stock options?

I'm at a startup and I just exercised my incentive stock options. I believe I'll need to pay the alternative minimum tax (AMT). Is there anything to be done this year or should I wait until tax ...
2
votes
2answers
441 views

What ways can an employee keep the upside of stock options after leaving?

Suppose that you work at some private company and that company offers some stock options to you as part of employment. For the sake of discussion, suppose they offer 100 000 options at $0.50 an option,...
1
vote
1answer
1k 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 ...
1
vote
2answers
645 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 ...
8
votes
1answer
90 views

Capital losses on early-purchased stock?

If I exercise an early purchase clause on employee incentive stock options to go ahead and purchase the stock and the company later goes bust, can I take capital losses against that stock?
4
votes
2answers
509 views

Payroll taxes on exercised stock options

The company I work for was recently sold. As part of the buyout, non-qualified stock options held by certain employees were exercised and sold immediately to the buyer. Since multiple employees were ...