All pre-IPO and public companies must have their financial processes and statements audited by an independent auditor, and as a part of this process the auditor will examine your stock compensation plan. By doing some anticipatory work, you’ll be well prepared for the audit rather than relying on the auditor to uncover any issues that need to be addressed – potentially delaying the IPO process. Here are four things you can do now to avoid a problematic audit.
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.
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.