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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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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3answers
2k views

How does 83b election work when paying fair market value at time of grant?

After purchasing restricted stock in a company, so that the amount paid for the stock is exactly equal to its fair market value at the time of purchase, can you file an 83b election at that time? If ...
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1answer
234 views

Had employee options in a company that has been sold to another foreign company. What happens?

One of my parents had employee options in a company that was based in the US. Recently however, that US company had been sold off to a German company (now based in Germany). Question is, what ...
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1answer
76 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.
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1answer
406 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 ...
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2answers
630 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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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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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
671 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 ...
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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
127 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
237 views

Would an ESOP issue physical shares or stock options (call options) to participating employees?

The ESOP (Employee Stock Options Plan) has the word 'options' in it. Is it the same "options" as in "futures and options', i.e are there physical company shares held under the ESOP in an employee's ...
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2answers
147 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. ...
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1answer
97 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 ...
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2answers
273 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 ...
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1answer
365 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 ...
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1answer
100 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, ...
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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
33 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 ...
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1answer
84 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. ...
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1answer
71 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 ...
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1answer
78 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 ...
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1answer
286 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 ...
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2answers
630 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 ...
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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 ...
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1answer
131 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 ...
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1answer
723 views

Standardized loan options to purchase employee stock options

I am curious whether there are standardized loans (kind of like margin loans) that are issued to purchase employee stock options. E.g. let's say I have little or no cash available but have 10,000 ...
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1answer
79 views

When to convert employee shares in an RRSP into cash, even if there is a penalty?

An employee has opted to invest in his/her company's share purchase plan with following criteria: Shares are held in an RRSP account. If emplyee contributes x% of her base salary from every ...
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1answer
277 views

Why a company offers share purchase plan under RRSP but not TFSA?

My company is offering share purchase plans under a tax free umbrella. What this means is that you can use your rrsp limit to contribute to thsi plan and gains will not be taxed unless withdrawn. My ...
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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 ...
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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 ...
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0answers
871 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 ...
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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 ...
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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=...
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1answer
65 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 ...
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1answer
180 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 ...
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3answers
134 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 ...
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2answers
845 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% ...
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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 ...
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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 ...
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1answer
197 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 ...
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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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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 ...
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37 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 ...
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52 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, ...
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0answers
44 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 ...
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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 ...
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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 ...

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