myStockOptions Editorial Team
Disability and death are subjects that few people like to think about, but they are important topics for employees who have stock compensation. Every stock plan has provisions on the treatment of equity compensation in the case of these life events, so you and your family members should understand those plan features just in case they come into play. This article presents the common ways in which stock plans treat grants upon the disability or death of employees.
Unfortunately, immortality is not part of a stock option grant. So you should understand what will happen to your options upon your death and what choices you need to make now.
You want to prevent losing vested options at death. Part 1 addressed typical stock plan provisions that apply when an optionholder dies. Part 2 discusses what happens to your stock options at your death and who can exercise them.