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

  Articles   FAQs  

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.

Watch For Noncompetes And Other Restrictive Covenants In Stock Grant Agreements

Bruce Brumberg
NEW! Your stock grant agreement can have a provision that will not only claw back your gains if you leave to work for a competitor but also restrain you from taking a job at that company. As this article explains, these types of provisions, called restrictive covenants, can lurk in grant agreements for stock options, restricted stock, and performance shares.

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

Bruce Brumberg
UPDATES! The days of pocketing stock grant gains, leaving the company, and moving to a direct competitor may be over. Your company may put noncompete forfeiture provisions in your equity awards.

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

Mark Miller
Podcast included! Taxation for internationally mobile employees can be extremely complex. Part 1 introduces the key cross-border topics you must know about equity compensation, including the sourcing and apportioning of income.

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 Internationally Mobile Employees (Part 2) This is premium content

Mark Miller
Podcast included! Taxation for internationally mobile employees can be extremely complex. Part 2 looks at specific scenarios, withholding taxes, and tax equalization.

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Are stock option and restricted stock grants negotiable? What terms are negotiable at hire? This is premium content

In most instances, stock grants are subject to the same types of practical limitations as negotiations for your cash compensation. For example, an employer may...

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

Changes in executive compensation and equity pay practices stemming from the downturn of 2008 and 2009 were extensive. In general, during the recovery the focus in stock compensation has shifted...

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? Any survey data about their use? This is premium content

Clawback forfeiture provisions usually do not appear in stock plans. Typically, they are included in stock grant agreements, which tend to be not publicly available. This makes data on clawbacks hard to find. However, a survey...

What is the tax impact of having a clawback in my grant? What if my company claws back the gains? This is premium content

The tax treatment that applies when you have a clawback provision or when a clawback is enforced is an evolving area that is gradually being clarified...

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?

If you leave the company before the vesting date of restricted stock or RSUs, you typically 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...

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