Chris Murphy
NEW! 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
NEW! 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
UPDATED! 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.
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.
Pete Carey
San Jose Mercury News
While the luster of stock options has dimmed for various reasons, the valley's options culture remains surprisingly resilient heading into the new decade.
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 and equity pay practices during the current downturn may eventually be far more wrenching than those caused by the 2000–2002 market drop. The focus in stock compensation has shifted from adjusting grant practices for mandatory expensing to questions about...
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...
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. 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 it. Companies occasionally do this for all employees in special situations. But...
They occur at numerous companies...
A clawback is triggered when you leave to work for a direct competitor or engage in...
For various reasons, clawbacks are becoming more common. According to surveys of proxy statements and other sources, the exact percentage of companies that use clawbacks is...
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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.
