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Job Events: Job Search and Negotiation

Articles   (Jump to FAQs)

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.

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

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.

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

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 in 2007 looks at trends in vesting schedules, post-termination exercise rules, and other plan features (includes some details on restricted stock grants).

Understanding The Risks In Your Pre-IPO Stock Options (Part 1)  This is premium content

Edwin L. Miller, Jr.
Understand what could happen to your stock options or restricted stock in venture capital financings, in an acquisition, or in an IPO. Part 1 looks at M&A deals; Part 2 analyzes IPOs.

How Does Your Company's Stock Plan Compare?
(Part 1)
  This is premium content

Kate Victory
Can't find comparative data on stock option and restricted stock grants? Read the results of surveys, including data on approaches to vesting, exercise, and underwater stock options.

How Does Your Company's Stock Plan Compare?
(Part 2)
  This is premium content

Kate Victory
UPDATED! Finding comparative data on stock option and restricted stock grants is difficult. Here we provide survey data on grant guidelines, expiration provisions, job termination exercise rules, and M&A.

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 walking to a direct competitor may soon be over. Your company may put noncompete forfeiture provisions in your stock grants.

Crunching Down On Contracts

Beth Stackpole
Electronic Business, 6/1/05
Rather than guarantee bonuses, employment agreements for CEOs increasingly tie compensation to performance. Changes on the horizon herald a major shift in both how companies handle contracts and whether they will use contracts at all. (Registration is required.)

The State Of Executive Pay In 2005

Gretchen Morgenson and Eric Dash
The New York Times, 10/15/06
This interactive graph shows the 2005 compensation of the highest-paid CEOs in the US. A chart shows the stock option gains of the top group. (Registration is required.)

Picture Improves For Private-Company Pay

Lisa Yoon
CFO.com, 7/26/05
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.

Working For A Piece Of The Action

Ian Mount
Business 2.0, 10/13/04
Learn basic ways to calculate whether trading salary for equity makes sense.

Workers Give Up Get-Rich Dreams, Still Value Stock Options

KC Swanson
TheStreet.com, 6/1/04
Stock options are a nice incentive but probably not the road to riches.

A Software Developer's Guide To Stock Options

Ivan Godard
InformIT, 5/13/04
As this blunt article points out, it is wise to be aware of the cynical realities that may lurk behind a grant of stock options at a technology startup.

Special Report: CEO Compensation


Forbes, 4/23/04
Looking for data on the compensation of the 500 biggest companies? You can sort the data different ways. "Other" compensation includes vested restricted stock grants and stock gains from exercising stock options during the recently ended fiscal year.

An Employee Guide To Restricted Stock

Ruth Simon
The Wall Street Journal (CareerJournal.com), 7/21/03
Is restricted stock in your compensation package? Read a basic guide to how it works.

Stock Options Lose Value As Recruitment Tool

Jeff Daniel
EE Times, 2/9/01
Stock options are still a great job perk for obvious reasons, and a little research and knowledge can mean the difference between an educated decision and a blind guess.

Deciding On Stock Options

CNN Money, 2/17/00
With a new job, the number of stock options you get, like your salary, might be negotiable.

How To Get Them To Show You The Money

Alan Webber
Fast Company, 11/98
Leigh Steinberg, the most powerful agent in sports, tells free agents in the business world how to negotiate great deals—and how to deal with their fear of negotiation.

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FAQs   (Jump to articles)

What is the likelihood of receiving a new-hire or periodic stock option grant?  This is premium content

The chances depend mainly on your position, its salary grade, and/or...

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...

Does service with a previous employer ever count toward vesting?  This is premium content

Not usually. An exception would occur if your...

Do employers ever issue additional options or restricted stock to replace grants that were forfeited at a previous employer?  This is premium content

If your skills are in great demand, employers may...

Can I negotiate faster vesting later while I am working for the company?  This is premium content

Probably not. If a company grants an option with a specific vesting schedule and the schedule is later shortened from its original terms, the accountants...

How does a "clawback" work to take away stock grant gains?  This is premium content

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

UPDATED! How common are clawback provisions?  This is premium content

The exact percentage of companies that use clawbacks is...

Can I protect myself from dilution and liquidity preferences in my pre-IPO company?  This is premium content

During the early stages of a company's existence (e.g., up to the first round of venture financing) you may be able to get...

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Annotated diagram of Schedule DTax 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.

Featured FAQs
Are the tax rules for restricted stock different if I am an independent contractor, a consultant, or an outside director and not an employee? This is premium content
In some ways they are similar. The tax treatment of restricted stock is the same for everyone. The reporting and withholding income is different. If you are an employee...
According to surveys, how are unvested stock options most commonly treated upon various types of termination? This is premium content
In its 2004 Stock Plan Design And Administration Survey, the National Association of Stock Plan Professionals found that the following treatments of options at termination are prevalent...