MSO Homepage Content http://www.mystockoptions.com Our latest content on stock options, ESPPs, restricted stock, stock appreciation rights (SARs), and other stock option compensation for employees and executives. Copyright 2000-2009 myStockPlan.com, Inc. en-us Fri, 06 November 2009 07:05:00 EST NEW! How may the economic downturn affect my company's stock grant practices? http://www.mystockoptions.com/faq/index.cfm/ObjectID/A89202E6-C505-4328-9C785FABAEE5CE9E 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 exp Equity Compensation Strategies For Down And Rising Markets http://www.mystockoptions.com/articles/index.cfm/ObjectID/8865D32B-3222-4449-B192B4C05392CEEF NEW! Although stock prices have risen from record lows, many employee stock options remain underwater. However, this is an opportune time to benefit from the current environment. This article presents a range of ideaChris Murphy NEW! If I lose my job but I am then rehired, can unvested stock options be reinstated, or can the exercise period of my vested options be extended to the end of the original term? http://www.mystockoptions.com/faq/index.cfm/ObjectID/39964F5B-5996-45D2-B4E0E84A49C86891 While being rehired is great news, the bad news is that the unvested options were canceled or forfeited when you were laid off, regardless of the reason for termination. As for the vested options... UPDATED! How do stock grants affect Roth IRA contributions and conversions? http://www.mystockoptions.com/faq/index.cfm/ObjectID/5847AE52-3FF2-4F34-A2EE62CF1F288AC1 The grant itself has no impact. The compensation income generated from exercise or vesting can affect... NEW! My company is now granting restricted stock, and the current share price is much lower than I think it will be in a few years. Any tax-planning ideas? http://www.mystockoptions.com/faq/index.cfm/ObjectID/64C3C1C3-277F-4D9B-8D7AC66248F6108F For restricted stock, you can make what the tax code calls a Section 83(b) election to be taxed immediately at grant instead of later at vesting, when your stock price, and thus your tax rate, may be much higher. However, before you make your decision Reframing Your Stock Option Exercise Strategy In Volatile Markets http://www.mystockoptions.com/articles/index.cfm/ObjectID/B65CE489-AA17-4318-9A22487EC6465F4D NEW! Your option grant terms and the behavior of your company's stock price are only part of your financial-planning story in volatile markets. Equally important is the price movement of what you will buy with the prTom Davison Hedging Your Employee Stock Options (Part 3) http://www.mystockoptions.com/articles/index.cfm/ObjectID/07BF629E-4A3F-490A-B8D2350F15F588F7 NEW! A regulatory change in 2009 by the SEC now lets unexercised employee options act as collateral for listed publicly traded options. Learn about the rules, possibilities, and limits of this technique.Robert Gordon UPDATED! What approaches do companies apply to underwater stock options? http://www.mystockoptions.com/faq/index.cfm/ObjectID/C605A454-9C7F-45D8-B5BEB00C521C3BEF The number of companies, and their employees, with underwater stock options has substantially increased, especially since the historic drop of the stock markets in October 2008. Various surveys and corporate examples show that... UPDATED! Are there any general guidelines for assessing when I may be hit with the alternative minimum tax? For example, my spouse and I together earn $100,000. Do we still need to worry about AMT liability when I ex http://www.mystockoptions.com/faq/index.cfm/ObjectID/3517A126-6683-11D4-AF69000102460375 Yes. People who live in high-tax states and itemize tax deductions or who have significant personal exemptions can easily owe more in AMT than in regular taxes. See the figures in the table below, which estimate the tipping point for the positive adju Strategies For Negotiating A Compensation Package In Down Markets http://www.mystockoptions.com/articles/index.cfm/ObjectID/1D6AC29D-DC8A-452D-A990D040DEDF7B4B 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, aChris Murphy Year-End Strategies For Restricted Stock: Ideas To Consider In 2009 http://www.mystockoptions.com/articles/index.cfm/ObjectID/4BBB83DC-7B3A-4D2B-8AA489CD24E24349 NEW! As part of your year-end and year-beginning tax planning, don't forget to review any restricted stock grants that vested this year, plus other company stock holdings. This article presents five strategies that mBruce Brumberg Can restricted stock and performance shares go underwater? http://www.mystockoptions.com/faq/index.cfm/ObjectID/63A1E711-FE29-457B-A1E551C41373A076 Not in the way stock options can. Restricted stock is worth the full market value of the stock when it vests (or, with restricted stock units, when shares are delivered). It does not matter if... Stockbrokers' Secrets (Part 7): Year-End Planning For ISOs http://www.mystockoptions.com/articles/index.cfm/ObjectID/FC31A053-3C8C-420F-A9D17C6B2CB05781 UPDATED FOR 2009! Learn about year-end planning specifically for incentive stock options, including ideas related to the alternative minimum tax.W.E.B. Bantling and Michael Beriss NEW! I have founder's stock that has become subject to forfeiture and transfer restrictions required by new investors. Does my stock become taxable to me, or do I need to make a Section 83(b) election? http://www.mystockoptions.com/faq/index.cfm/ObjectID/5566ADB5-0AD9-4DF3-A7A6A8F21D64BE28 The imposition of forfeiture, transfer, and buyback restrictions on you when a new investor acquires stock... NEW! How do I obtain details of my estranged spouse's stock grants for negotiating our divorce agreement? http://www.mystockoptions.com/faq/index.cfm/ObjectID/62B1AA11-8411-4F13-88380B6E73C0CA86 You will need to hire a lawyer. Most likely... NEW! If my stock options are scheduled to expire on a holiday or a weekend, is the last possible exercise date before or after then? http://www.mystockoptions.com/faq/index.cfm/ObjectID/C8A18A10-1D63-4A82-A32A5165EA7B5653 You need to check your stock plan's provisions and the procedures/practices followed by your company or any outside stock plan administration firm. Usually... The Use Of GRATs With Company Stock To Reduce Taxes: Hurry Before The Rules Change http://www.mystockoptions.com/articles/index.cfm/ObjectID/E19CF7B6-64E9-4CF9-9E0F9304DF2ACB50 NEW! The grantor-retained annuity trust (GRAT) is one of the best techniques currently available for transferring company stock or other investable assets to family members with little or no estate or gift tax cost. Elyse G. Kirschner and Carlyn S. McCaffrey Why has my restricted stock grant been taxed when I am merely eligible for vesting acceleration at retirement but I have not actually retired? http://www.mystockoptions.com/faq/index.cfm/ObjectID/26BCB6F5-4001-4F28-8AC094CA1FBA1762 Uncertainty, and even inconsistency, surrounds this situation. For tax purposes it does not matter that you must actually retire to vest the shares. With restricted stock, taxation is triggered when the grant is... How Tax Rate Changes Impact Your Stock Grant Strategies (Part 3): Incentive Stock Options http://www.mystockoptions.com/articles/index.cfm/ObjectID/599D1E79-8EFC-4DAB-9E6A5CB0A11CC1A4 President Obama's proposals will probably raise taxes after 2010. Should you take action with stock options ow or wait until new rates apply? Part 3 looks at incentive stock options.Stanley Trotta with Robert Gordon How To Avoid The Most Common Stock Option Mistakes (Part 1) http://www.mystockoptions.com/articles/index.cfm/ObjectID/0E38632B-768F-4A08-A446B71F095C442E Avoid the mistakes others made during prior ups and downs in the stock markets. Common mistakes arise in nine different situations, including termination, mergers, financial planning, term expiration, and life events.Beth Walker Stockbrokers' Secrets (Part 3): Year-End Planning For NQSOs, Restricted Stock, And RSUs http://www.mystockoptions.com/articles/index.cfm/ObjectID/5AA692F6-C556-11D4-AF76000102460375 UPDATED FOR 2009! The time for tax planning is before the year ends; tax season is too late. For year-end 2009, learn about several ideas that apply to nonqualified stock options (NQSOs) and restricted stock/RSUs. Meanwhile, look ahead at the likelihood of tax rate changes under President Obama.W.E.B. Bantling and Michael Beriss Better Late Than Never: Stock Option Strategy For The Market Upturn http://www.mystockoptions.com/articles/index.cfm/ObjectID/6966FBA7-FCA8-429E-97F4760A3B4B3A79 The stock markets will one day rise again. When they do, question the urge to exercise your options for quick profits as soon as possible: exercising too early can be a big mistake.Michael Beriss Why You'll Learn To Like Restricted Stock Grants http://www.mystockoptions.com/articles/index.cfm/ObjectID/B1750B46-204C-477F-A2F82EE536C70D9A Your company is no longer granting you stock options, or at least fewer than before. Instead, you're receiving restricted stock or restricted stock units. While these grants don't carry the same upside as stock options, they have benefits you will surely appreciate once you understand the special features of these grants.Richard Friedman Decisions At Vesting With Restricted Stock (Part 2): Hold Or Fold? http://www.mystockoptions.com/articles/index.cfm/ObjectID/3C81D98D-16D3-45C7-82916B8D6168B638 Vesting is another crucial time for making decisions about your restricted stock. Decisions include what tax-withholding method to use, whether you should hold or sell the stock, and what account to keep the shares or cash in after vesting.Tom Davison Fundamentals Of Employee Stock Purchase Plans (Part 1): Basic Structure And Terms http://www.mystockoptions.com/articles/index.cfm/ObjectID/FEAFAEBB-3B83-4D15-9C3D77F1AF99FDF1 Your company's employee stock purchase plan (ESPP) may be one of the best employee benefits in your total compensation package. However, to maximize the value of your ESPP, you need to understand how it works. This starts with knowing its basic structure and key terms, and how ESPPs work in both up and down markets.Alisa Baker Employee Stock Purchase Plans & Your Financial Planning (Part 1) http://www.mystockoptions.com/articles/index.cfm/ObjectID/F381C069-EA0E-45BB-853AC3117887115E Employee stock purchase plans (ESPPs) are popular and prevalent at most public companies. However, the structure of these plans is changing. These modifications may affect your decision to participate in your ESPP and its place in your financial planning.Bruce Brumberg ESPP Choices: Flip Or Hold? (Part 1) http://www.mystockoptions.com/articles/index.cfm/ObjectID/1F79CE87-535D-4ABD-BC3FE4CF06B86CAE After you decide to participate in your company's employee stock purchase plan, your next decision is whether to sell the stock soon after purchase or to hold it (and for how long). This article series examines different ways to participate in your ESPP according to relative risk tolerance, timeframe, and needs for money.Timothy A. Farmer and Gregory G. Geisler Stock Option Fundamentals (Part 5): Incentive Stock Option Taxation & Alternative Minimum Tax http://www.mystockoptions.com/articles/index.cfm/ObjectID/D014F6E5-72B2-48A6-994BB222445373FE You're ready to delve deeper into how and when different taxes apply to ISOs, including the AMT. You need to consider taxes at exercise and at sale to put together a strategy that maximizes the value of your options.Marilyn Renninger The ISO Tax Trap And The AMT Credit Myth: What To Do Before Exercise And At Year-End http://www.mystockoptions.com/articles/index.cfm/ObjectID/A6D7D117-BF38-4EDA-AE2306F4C119A53E The tax reductions of the past few years have brought both good and bad news for holders of incentive stock options (ISOs). While you may have lower capital gains rates when you hold the shares long enough after exercise, it's harder to avoid the risks of the alternative minimum tax (AMT) and to fully recoup any AMT credit.Alan Ungar Retirement Planning With Your Stock Options And Other Stock Compensation (Part 1: Pre-Retirement Planning) http://www.mystockoptions.com/articles/index.cfm/ObjectID/47878A79-AF88-4502-A8B536A069A95DD6 Your stock options and restricted stock are important for your retirement planning. Understand the related issues and explore strategies, whether you are planning for retirement now, are nearing retirement, or have retired already.Carol Cantrell I'm Getting Divorced: What Happens To My Stock Options? (Part 1) http://www.mystockoptions.com/articles/index.cfm/ObjectID/337EC7FF-E522-4761-A1B4EA2C6069444E UPDATED! When you and your spouse decide to split, your stock options will probably be divided too. Become familiar with the crucial issues related to stock options in divorce, including the treatment of vested and unvested stock grants, approaches to valuation, and the division of options in the property settlement.Linda Olup How To Use Rule 10b5-1 Trading Plans To Sell Company Stock (Part 1) http://www.mystockoptions.com/articles/index.cfm/ObjectID/E9A2332B-D74B-4CCE-8C13F705E5191D33 Insider trading restrictions can cause constant headaches for executives and their companies. Rule 10b5-1 trading plans are an ideal solution when they are properly drafted and implemented.Darryl Rains and Sunil Kulkarni Hedging Your Employee Stock Options (Part 1) http://www.mystockoptions.com/articles/index.cfm/ObjectID/8AD65F4A-5869-4730-B89F4630E435C839 Understand the key issues and limits of hedging NQSOs, including company, SEC, and tax law constraints. Then you can analyze potential hedging strategies for your stock options, such as collars.Robert Gordon My Company's Being Acquired: What Happens To My Stock Options? (Part 2) http://www.mystockoptions.com/articles/index.cfm/ObjectID/A070411E-7379-48BC-8215C9BA001E6E52 Your company is being acquired. You worry about losing your job and your valuable stock options. In Part 1 we looked at the importance of your option grant terms. Part 2 examines the acquisition's terms and the valuation of your company.Richard Lintermans