Matt Simon
Whether it is expected or not, job loss is an upheaval that gives you a lot to think about. However, as you clear off your desk, don't forget your stock compensation. Too many departing employees have lost valuable potential gains because they were unaware of the post-termination rules for their stock grants.
Matt Simon
Amid the upheaval of job loss, don't forget your stock compensation. This article covers important aspects of job termination that apply to all stock grants.
Alisa J. Baker
Part 3 of this article series reviews the steps you must take to preserve your equity rights at or before the termination of your employment, and in any severance arrangement. The impact depends on your specific agreements, the company's overall plans and policies, and—in many cases—the reason for the termination.
Richard Friedman
UPDATED! Get a sense of what you should, and should not, expect in the terms of your stock option grant. This survey of 300 companies looks at trends in vesting schedules, post-termination exercise rules, and other plan features.
Sandra Block
USA Today
Whatever route you choose when you're laid off, some tasks can't wait, such as developing a strategy to exercise your stock options.
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If your option was granted with a graded vesting schedule, you are allowed to exercise the vested portion of the option grant, but most commonly you forfeit the remainder...
Yes. You forfeit whatever stock has not vested. Exceptions can occur, depending on...
You will continue to own stock purchased during your employment, but your eligibility for participation in the plan ends. Any funds withheld from your salary will be...
No law requires this. It is your obligation to know these details. Court cases show that...
Most companies' stock plans focus on the date of termination, meaning the actual...
No law gives you special rights in your stock options. Under most stock option plans and grant agreements, an employee whose termination stems from unfavorable economic conditions generally has...
In short, yes, assuming this termination is made for good-faith reasons, such as business downsizing. Most employees are "at will," which means...
Former employees' transactions, regardless of the reason for termination, follow the same withholding and reporting requirements that apply to...
Former employees' transactions, regardless of the reason for termination, follow the same withholding and reporting requirements that apply to...
You can try for this in your severance agreement. Companies occasionally do this for all employees in special situations. But...
The period for option exercise depends on both your employer's plan design and the reason for your termination. If the options are not exercised by the specified date, they are forfeited. Court cases and survey data show that...
While being rehired is great news, the bad news is that the unvested options were canceled or forfeited when you were laid off, regardless of the reason for termination. As for the vested options...
Usually, you will have time after you leave the company to exercise your options. However, some companies...
Usually the stock plan rules override other agreements made under that...
With approval from the board, and perhaps also shareholders, your company can modify outstanding grants in a way that is consistent with its stock plan. However, it should avoid tax pitfalls for you and the company, such as...
Check your stock plan to see whether it addresses this type of divestiture (or spinoff), in which just a small division or subsidiary is sold. Many plans...
Yes. Stock plans often have different provisions on post-termination exercise periods for vested options, on any acceleration of vesting, and on the treatment of...
In its 2010 Domestic Stock Plan Design Survey, the National Association of Stock Plan Professionals (NASPP) found that the following treatments of options at termination are most common...
The rules do not apply only to trades in your company stock while you are working for the company...
Not usually. The post-termination exercise period starts when you...
Not unilaterally. Although no specific law exists on this question, courts have examined this situation and provided some guidance...
Dividends and the shareholder voting rights that go with restricted stock do not...
You could mistakenly let the options expire without exercising them. You do not have your vested options for life...
Yes. Under the Internal Revenue Code, you must exercise an ISO within...
For ISO purposes, a
bona fide leave of absence greater than three months can constitute a termination of employment if...
The Internal Revenue Code is very clear on the requirements of favorable tax treatment for ISOs. Among other conditions...
The Section 16 rules, including the requirements of Form 4, apply for up to six months after...
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Tax 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.
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Job Loss And Your Stock Grants (Part 1): Options, Restricted Stock, And ESPPs 
