Chris Murphy
A down market provides ideal circumstances for negotiating a larger stake of equity compensation as part of your pay package. With companies looking to conserve cash and find effective ways to recruit, retain, and motivate executives and key employees, your interest in this type of compensation may be well received. This article explores the possibilities you may want to consider if this opportunity arises.
Alisa J. Baker
You may find a gap between what you expect from your equity compensation and what you receive. Often the problem stems from the complexity of the related documents and rules. Learn about them, and understand why you must focus on conflicting or inconsistent provisions.
Alisa J. Baker
Part 1 looked at the problems of conflicting or inconsistent provisions among different documents. Part 2 discusses which existing documents and rules nonfounder executives must consider when negotiating for equity compensation during the early (pre-public) stages of a company's development and growth.
Mark Miller
For employees and executives, international travel and relocation are increasingly common. The taxation of "mobile employees" is always complex, and never more than with equity compensation. Part 1 introduces the key concepts and rules, including the sourcing and apportioning of income.
Mark Miller
International assignments or relocations can present attractive opportunities for career advancement. However, the taxation of equity compensation for mobile employees raises complex issues. Part 2 looks at specific scenarios, withholding taxes, and tax equalization.
Bruce Brumberg
UPDATED! The days of exercising your stock options, pocketing the gains, and leaving the company for a direct competitor may be over. Your company may put noncompete forfeiture provisions in your stock grants.
Richard Friedman
Your company just gave you a stock option grant, or your existing options are underwater. You wonder: "What are my stock options worth? Are they worth anything at all?" Learn about different valuation methods, including Black-Scholes.
Johanna Schlegel
Particularly in high-tech startup companies, it is more important to know what percentage of the company a stock option grant represents than how many shares you get.
Tom Starner
Human Resource Executive
Stock compensation, whether options, restricted stock, or performance shares, continues to be an important way to motivate and retain employees while providing a sense of ownership. Companies also continue to recognize that employee education and communications are important for ensuring that these grants are effective.
Lisa Yoon
CFO.com
As stock option expensing causes public companies to reduce stock grants, it similarly affects stock grants at private companies. The pay packages at private companies can now more evenly match those at public companies, and private companies can offer more generous option grants.
Michael Malone
Wired
Nothing lures top talent like the chance to get really rich.
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Changes in executive compensation and equity pay practices stemming from the downturn of 2008 and 2009 were predicted to be extensive and vigorous. Experts at consulting and research firms have been busily analyzing corporate stock plan practices since then...
A clawback is triggered when you leave to work for a direct competitor or engage in...
Clawback provisions occur in company stock grant agreements, which tend to be not publicly available. However, a survey...
The exact tax impact is not always clear, especially when the repayment happens in the year after you recognized the income on your tax return, or if it occurs after taxes were withheld. You would...
At some companies, international assignments are often accompanied by what is commonly called an equalization package. To give you an incentive to accept the international assignment, the company agrees to...
First, you may be eligible to receive only NQSOs, so read the FAQs on the requirements of ISOs...
Amid concerns about the backdating and springloading of stock options, companies have tightened their procedures for approving stock grants and their timing. After grants are properly approved, companies are now...
Though this varies from industry to industry and among peer companies, most companies use a combination of...
Backdating has become a dangerous practice for companies, and courts have imposed prison sentences on corporate executives found guilty of backdating violations. Previously, in some new-hire situations your company might have been more flexible. Now companies try...
Stock options often cannot be exercised until they are vested, and then they are profitable only after...
Unless you are a senior executive of a public company who can compare grants at peer companies by looking at their proxy statements, or unless your company is willing to open its option records to you, you may never know whether you and your co-workers have been treated equally...
If you are convinced that you have been treated unfairly...
If your skills are in great demand, employers may...
Your company's flexibility depends on economic conditions, the stage of its development, trends in your industry, and the limitations in the company's stock plans. Any choice offered can depend on whether it is a negotiated grant at hire, an alternative to a cash bonus, or a new approach for your company's equity grants. Employee-choice programs are a nascent trend, with companies such as...
The value of an option consists of two elements: time premium and intrinsic value. Intrinsic value is the difference...
Not usually. An exception would occur if your...
You can try for this in your severance agreement. Companies occasionally do this for all employees in special situations. But...
They occur at numerous companies...
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