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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

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54
votes
5answers
12k 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
512 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
37 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
30 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
139 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
88 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
303 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
71 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
150 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 ...
0
votes
0answers
38 views

Tax on vested shared Germany (analogue of 83b election)

In the U.S. they have something called 83b election, relevant when a founder have shares that are vested. To my understanding, one must file this election shortly after the company is founded, ...
0
votes
0answers
34 views

Report 83(b) income with no W2/1099-MISC?

In early 2018 I made an 83(b) election with respect to some stock a company is granting to me over several years. That means I should be paying taxes now on all of that stock. From reading the ...
2
votes
1answer
168 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
46 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 ...
0
votes
1answer
62 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
414 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 ...
3
votes
0answers
119 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. ...
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 ...
2
votes
1answer
117 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 ...
2
votes
0answers
108 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 ...
2
votes
1answer
118 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 ...
2
votes
0answers
163 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 ...
1
vote
1answer
78 views

Another word for this kind of 'Corporate Bond'?

I'm currently working at a company that was acquired in the not too distant past. The company is still relatively small and still has a "start-up" mentality in a lot of ways, for better or for worse. ...
2
votes
2answers
194 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 ...
2
votes
0answers
36 views

Tax Basis and Bargain Element for Incentive Stock Option on Foreign Stock Exchange

The US company I work for recently went public, however the powers that be chose to do the IPO on the Australian Stock Exchange (ASX). I am based in the United States. My stock option strike price ...
3
votes
3answers
251 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
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. ...
1
vote
2answers
264 views

Can the board of directors block a key employee from selling vested shares?

The shares are no longer restricted and are fully vested, and there are no upcoming announcements or other inside information that may affect the share price. It just smells like a conflict of ...
1
vote
1answer
70 views

AMT Tax on Company Stock Options

I must exercise approx. $100k in company stock options in the 1Q19 as they are expiring. My estimated 2019 income is $235k. Any advice on minimizing AMT tax of 28% on the est. $175k in profit when I ...
2
votes
0answers
256 views

Exercise a stock option in a US-based company as a non US tax resident

I'm given 1000 stock options (all vested) at $100 strike price per option. Current stock valuation is $1000 per share. As I understand, if I exercise I'll pay $100K out of my pocket and I'll also get ...
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 ...
4
votes
2answers
165 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. ...
3
votes
1answer
72 views

What is the cost basis when selling shares received as part of an acquisition?

If I vested 100 options in StartupCo at a strike of $1 and I exercise then I will have paid $100 for those shares of StartupCo. If BigCorp acquires StartupCo and I receive $5 and .25 shares in ...
2
votes
1answer
324 views

Tracking employee stock option grants in GnuCash

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 ...
2
votes
0answers
88 views

Tax implications of U.S. company granting non-qualified stock options (NSO) to a non-resident?

I am a non-resident individual outside USA who has been granted a NSO stock option in a US start-up. I have an early access option on 10000 shares that vest until 2021. I am trying to understand if ...
2
votes
0answers
325 views

Can you keep exercised EMI options after leaving a company?

I'm fairly unknowledgeable regarding financial matters, so any help would be greatly appreciated. I have been granted EMI options with my current employer, half of which have vested. The company is ...
5
votes
2answers
266 views

What does “cashes in many of his Enron share options” mean?

I'm studying for an organisational subject and I was reading the following paragraph: August 2001 Jeffrey Skilling resigns after just six months; Ken Lay returns to day-to-day management of ...
1
vote
1answer
267 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
2answers
150 views

How long is an informal stock purchase offer valid for?

I worked for a startup which I have since left but part of my employment package involved being given shares in the company. About 5 weeks ago I was sent a very informal email asking if I would accept ...
2
votes
1answer
112 views

Why exercise ISO/QSO early?

What advantage would there be to exercising incentive stock options early? I understand that for lowest US income taxes, you have to wait 2 years after excising to sell. But two years now vs. two ...
2
votes
1answer
138 views

Stock options value

I am looking for a new job and I received an offer for which I will initially get 10000 pounds of stock options. It is difficult to understand what their real value is and I cannot ask too many ...
-2
votes
2answers
71 views

Incentive Stock Option (ISO) tax question - more specific this time

Here's the scenario: I live and work in New York City. On November 1, 2017 I get granted 80,000 ISO's that vest over four years (with a one year cliff). The strike price is $3. On November 1, 2018 ...
2
votes
3answers
186 views

Tax implications of exercising ISOs and using proceeds to exercise more ISOs

On November 1, 2017, I am granted 80,000 ISOs that vest over four years (with a one year cliff). The strike price is $3. On November 1, 2018, 20,000 of the options vest. The FMV has grown from $3 to $...
2
votes
1answer
70 views

Exercises of employee share options

Reading Atlassian's (TEAM) annual report for 2017, I came across the following sentence: Net cash provided by financing activities was $2.3 million for the fiscal year ended June 30, 2015 as a ...
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 ...
1
vote
1answer
377 views

Comparing stock purchase plans in offer letter

I have received two job offers both containing stock purchase options. Unfortunately, I have no clue what they mean and how to compare one with another. Company A: It will be recommended at the first ...
3
votes
1answer
175 views

Evaluating worth of ESPP (Startup)

I got an entry offer for an Engineering position: base salary 90K/y at a start up (around 50 employees, got good funding during the last year). The package includes an ESPP for 6000 stocks (1 year ...
2
votes
1answer
6k views

What happens to unvested RSUs when a public company is bought out by private firm?

This is kind of similar to the question in here but a bit specific to a particular situation. My company ( a public company ) was recently bought by a private company. In the agreement, it said all ...