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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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 ...
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1answer
192 views

Do we always get back AMT money for stock options?

I'm thinking of early exercising my stock options. One of the reasons is that I won't have to pay alternative minimum tax (AMT) now (strike price is equal to fair market value). But from what I ...
4
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2answers
484 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 ...
4
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1answer
583 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 ...
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1answer
99 views

What should I do with my stock options?

First, assume I know all the regular disclaimers about seeking professional tax planning/CPA help. I have, but want to balance that with many second opinions :) I have the following vested, ...
0
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1answer
65 views

Options on sale of a Ltd Company

I have options in a Limited Fin Tech start up company. The options are based upon the company achieving profitability. It now appears likely that the company is to be acquired at a substantial price ...
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0answers
850 views

RSU stock vesting after separation from company

I left the company I worked for a month ago. I had a bunch of RSU (restricted stock units) due to vest after my final date of employment. I would have assumed I lose any un-vested stock including ...
2
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1answer
978 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 ...
2
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1answer
147 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 ...
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1answer
75 views

Unwinding unvested shares bought at different prices when departing a company in California

My company repriced their options and the price dropped. Let's say the price went from $5 to $2 (not actual numbers). I'd early-exercised 75% of my grant at $5 and (later) exercised the remaining ...
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1answer
76 views

Benefits of offering employee purchasable stock options

My company is rolling out a stock options program for employees. We are not yet publically traded but I think an IPO is only a few years away. I was thinking about making a suggestion to management ...
3
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2answers
165 views

Perform exercise-and-hold AND exercise-and-sell-to-cover?

Suppose I was granted 100,000 shares of ISO stock in a startup in the US with a strike price of $1/share and current valuate of $1.25/share. These shares are 100% vested when I leave the company and I ...
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2answers
744 views

Could an ex-employee of a company find themself stranded with shares they cannot sell (and a tax bill)?

A NYTimes article says When employees leave start-ups, they often have the opportunity to buy stock that has been set aside for them at a low price. But if their start-ups have been successful, ...
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2answers
118 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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2answers
608 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
93 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 ...
1
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1answer
284 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 ...
3
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1answer
89 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
756 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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0answers
203 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=...
4
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2answers
814 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
627 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 ...
4
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2answers
314 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 ...
2
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1answer
105 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 ...
3
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2answers
189 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
112 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
321 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
204 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 ...
2
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0answers
338 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 ...
3
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1answer
84 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
154 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
93 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
646 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 ...
2
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2answers
134 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
386 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? ...
5
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2answers
8k 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
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 ...
5
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4answers
1k views

Why don't share prices of a company rise every other Friday when the 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
72 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
124 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
162 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
167 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 ...
5
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4answers
1k 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
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1answer
278 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
131 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
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1answer
7k 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
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1answer
416 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 ...
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1answer
130 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
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1answer
228 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 ...
0
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2answers
836 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% ...