Early retirement may be treated less favorably. The NASPP's 2016 Domestic Stock Plan Design Survey found that more of the surveyed companies accelerate unvested options for normal retirement (19%) than for early retirement (8%).

The post-termination exercise periods also vary among companies, as the NASPP's 2016 survey shows. For early retirement, 48% of the surveyed companies give three months, while only 6% let you exercise the option for the remainder of its term. For normal retirement, 25% provide three months, and 21% of companies allow exercise during the remainder of the option term.

Alert: Review your stock plan documents for their definitions of early retirement, retirement, and similar terms. Do not assume that the definitions of such terms will be identical across all of your company benefit plans (e.g. health, 401(k), pension, etc.). For example, do not assume that just because you can elect to receive your pension benefits early that you are also, at the same age, eligible for retirement provisions in your stock options. This was the mistake underlying the facts in the court case of Bell v. Pfizer. In addition, understand what impact working as an employee or a consultant for a competitor during retirement would have on your outstanding stock options.