Many private company employees holding stock options are looking for tax strategies prior to the company’s public offering. A lesser-known provision for pre-IPO options exercise allows employees holding ISO-options to lock in a lower pre-IPO price in order to minimize ordinary income taxes and start the capital gains period running during the pre-IPO period. Read on for more details surrounding HR 5719.
Designing and managing equity plans is half the battle – effective communications represents the other half and requires equity plan managers to put on their marketing caps. I know that you already have a ton on your plate, so here is a quick “Marketing 101” that will help you gain awareness for your equity plans.
In the novel Scoop (1938), a satire about journalism by British writer Evelyn Waugh, a character declares: “News is what a chap who doesn’t care much about anything wants to read.” Respectfully, we disagree. Here at myStockOptions.com, we both care about equity compensation and take a keen interest whenever news about stock comp flashes across our radar screens. In this week’s blog commentary, we summarize some recent appearances of stock compensation in the mainstream news media, including stories about equity awards to high-profile figures at prominent companies.
Alicia worked for a great entrepreneurial company. As a promising young marketing staffer, she was excited to get non-qualified stock options that she hoped could be worth a lot of money not too far down the road. The options had a six-year vesting rule, by which time she would have the choice to use after-tax dollars to exercise the awards and get the options, paying income tax on the spread. But Kevin, the owner, assured her that by that time, the company would go public or, more likely, be sold to a well-heeled buyer, so she’d never actually be out of pocket. But things didn’t go as planned.
Earnings per share (EPS) is one of the most important corporate performance metrics, yet, one of the most complex measurements for companies with multiple types of equity awards. Jim Vincent, the vice president of client support at Certent, along with Ken Stoler of PricewaterhouseCoopers LLP and Raul Fajardo CEP, QUALCOMM Incorporated will be talking about the challenges of computing EPS at the 23rd Annual NASPP Conference in San Diego later this month. We met with Jim Vincent to take a peek at some of the considerations that may affect your EPS calculations.