Tax Center Global Tax Guide / Glossary / Discussion / About Us
Register Log In
Core Concepts   
Valuation & Expensing   
Underwater Options   

Annotated diagram of Schedule DTax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.

Basics: Grants

Will I be granted stock options and/or restricted stock automatically every year?

Companies tend to grant options at hire and only periodically thereafter for any of the following reasons:

  • to reward performance
  • to motivate employees with vested stock options
  • to match other job offers
  • to retain employees through mergers or IPOs
  • to respond to volatility in the stock price

For survey data on the eligibility and frequency of stock grants, and common events that trigger stock grants, see a related FAQ.

Print this FAQ: Printer icon
Share this FAQ:
Share this article on LinkedIn Share this article on Facebook Share this article on twitter
Prior FAQ in list Return to list Next FAQ in list