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Job Events

Job Events examines the role of equity awards in hiring and salary negotiation, and the impact of job termination.

Browse an overview of this section below, or explore the subtopics to the left.

In job negotiation, hiring, and employment termination, it is important to consider your stock compensation. In particular, companies strictly adhere to rules about the treatment of equity awards upon job termination, so it is crucial to know what to expect should your employment end.

Test Your KnowledgeTest and improve your knowledge with our Job Loss quiz and its study guide in the answer key.

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Job Loss And Your Stock Grants (Part 1): Options, Restricted Stock, And ESPPs

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.

Negotiating And Structuring Your Stock Compensation (Part 1): Key Documents This is premium content

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.

Job Loss And Your Stock Grants (Part 2): Changes Of Employment Status, Post-Termination Tax, Severance This is premium content

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.

Negotiating And Structuring Your Stock Compensation (Part 2): Privately Held Companies This is premium content

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.

Negotiating And Structuring Your Stock Compensation (Part 3): Equity Rights And Severance When You Terminate Employment This is premium content

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.

Strategies For Negotiating A Compensation Package In Down Markets This is premium content

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.

Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 1) This is premium content

Mark Miller
Overseas travel and relocation are increasingly common, but the taxation of internationally mobile employees is complex. Part 1 introduces the key cross-border topics you must know about equity compensation, including the sourcing and apportioning of income.

Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 2) This is premium content

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.

Your Stock Grants May Come With Strings Attached This is premium content

Bruce Brumberg
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.

Stock Option Terms: What You Can Expect This is premium content

Richard Friedman
UPDATES! Get a sense of what you should, and should not, expect in the terms of your stock option grant. A major survey of companies looks at trends in vesting schedules, post-termination exercise rules, and other plan features.

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How have the stock-market volatility and economic fluctuations of recent years changed corporate stock grant practices?

Changes in executive compensation and equity pay practices stemming from the downturn of 2008 and 2009 were extensive. Experts at consulting and research firms have been busily analyzing corporate stock plan practices since then, and their survey results show...

How does a "clawback" work to take away gains from my equity compensation?

A clawback is triggered when you leave to work for a direct competitor or engage in...

How common are clawback provisions? This is premium content

Clawback provisions occur in company stock grant agreements, which tend to be not publicly available. However, a survey...

What is the tax impact if my company claws back gains from stock grants? This is premium content

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...

What is the likelihood of receiving a new-hire or periodic stock grant? Any survey data or common practices? This is premium content

The likelihood depends mainly on your position, its salary grade, and/or your company's industry. Surveys of common practices among companies show that...

What happens if I terminate my employment before an option grant is fully vested?

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...

When I take an international assignment, will taxes on my stock compensation be equalized? This is premium content

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...

Do I forfeit my restricted stock if I leave the company before vesting?

Yes. You forfeit whatever stock has not vested. Exceptions can occur, depending on...

Is it better to be granted nonqualified stock options (NQSOs) or incentive stock options (ISOs)?

First, you may be eligible to receive only NQSOs, so read the FAQs on the requirements of ISOs...

If I leave the company, what happens to the money that has been deducted from my paycheck to purchase ESPP shares?

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...

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