The period for option exercise depends on both your employer's plan design and the reason for your termination. If the options are not exercised by the specified date, they are forfeited. Court cases and survey data show that...
Yes, according to the terms of your stock grant and any flexibility given by your plan administrator. Usually you...
You will continue to own stock purchased during your employment, but your eligibility for participation in the plan ends. Any funds withheld from your salary will be...
No law requires this. It is your obligation to know these details. Court cases show that...
Most companies' stock plans focus on the date of termination, meaning the actual...
No law gives you special rights in your stock options. Under most stock option plans and grant agreements, an employee whose termination stems from unfavorable economic conditions generally has...
In short, yes, assuming this termination is made for good-faith reasons, such as business downsizing. Most employees are "at will," which means...
Former employees' transactions, regardless of the reason for termination, follow the same withholding and reporting requirements that apply to...
Former employees' transactions, regardless of the reason for termination, follow the same withholding and reporting requirements that apply to...
You can try for this in your severance agreement. Companies occasionally do this for all employees in special situations. But...
While being rehired is great news, the bad news is that the unvested options or restricted stock/RSUs were canceled or forfeited when you were laid off, regardless of the reason for termination. As for the vested options...
Usually, you will have time after you leave the company to exercise your options. However, some companies...
Usually the stock plan rules override other agreements made under that...
With approval from the board, and perhaps also shareholders, your company can modify outstanding grants in a way that is consistent with its stock plan. However, it should avoid tax pitfalls for you and the company, such as...
Check your stock plan to see whether it addresses this type of divestiture (or spinoff), in which just a small division or subsidiary is sold. Many plans...
Stock plans often have different provisions on post-termination exercise periods for vested options, on any acceleration of vesting, and on the treatment of...
Many employers do not adjust the vesting schedules of stock options or restricted stock/RSUs. However, some may feel that adjusting the grant is appropriate and consistent with its compensation philosophy because it was made with the understanding that you would receive equity in the business in exchange for full-time future services. If you switch to part-time work, the company may...
In its 2021 Equity Incentives Design Survey, the National Association of Stock Plan Professionals found that the following treatments of options at termination are most common...
The prohibition against insider trading and tipping continue to apply to trades in your company stock even after you stop working there...
Not usually. The post-termination exercise period starts when you...
Not unilaterally. Although no law specifically addresses this question, courts have examined...
Dividends and the shareholder voting rights that go with restricted stock do not...
You could mistakenly let the options expire without exercising them. You do not have your vested options for life...
Yes. Under the Internal Revenue Code, you must exercise an ISO within...
For ISO purposes, a bona fide leave of absence greater than three months can constitute a termination of employment if...
The Internal Revenue Code is very clear on the requirements of favorable tax treatment for ISOs. Among other conditions...
The Section 16 rules, including the requirements of Form 4, apply for up to six months after...
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