1st QUARTER 2017

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ARTICLES, FAQs, AND VIDEOS
Our core content sections, organized by topic

PODCASTS
Brief, lively audio recordings on important topics in equity compensation, available at myStockOptions.com, iTunes, and Google Play Music

GLOBAL TAX GUIDE
New country guides: Egypt and Turkey; plus updates for Brazil, Chile, France, the United Kingdom, and others

GLOSSARY
Recent additions include elective stock withholding, retirement earnings test , T+2, and more

ASK THE EXPERTS
Selected questions from Premium Members of myStockOptions.com

NONQUALIFIED DEFERRED COMPENSATION
The latest major updates and additions at our sibling website myNQDC.com.


The myStockOptions.com Blog is a great way to keep up with new developments in equity compensation and with the frequently updated content of myStockOptions.com. You can also follow us on Twitter.

ARTICLES, FAQs, AND VIDEOS

Basics

NEW! 10 Ways Stock Compensation Can Make You Happier

NEW PODCAST INCLUDED! Stock Option Terms: What You Can Expect

How Does Your Stock Plan Compare? (Parts 1 and 2)

Why do companies grant stock options, restricted stock, and other equity awards? Do employees really value them?

How many people have or are eligible for stock options, restricted stock/RSUs, or ESPPs?

When did stock option expensing become mandatory? How does this affect and change my stock grants?

What do surveys and examples reveal about the effects of expensing, stock market trends, and other developments on equity compensation?

What is a stock grant agreement? Do I need to accept it?

What does a stock grant agreement look like, and what terms does it cover? Where can I find samples?

What is the difference between variable and fixed restricted stock grant guidelines?

Are there different types of time-based vesting schedules? Which are most common?

What is a typical vesting schedule? Do you have any data on vesting schedules and their design?

How is fair market value (FMV) determined for setting my exercise price? What are common company practices?

What forms of exercise notice will my company accept?

How can I use a margin loan to exercise my options? Does it defer the taxes?

When do I receive the sales proceeds, and how will I know the amount?

Does vesting continue while I am on a leave of absence or a sabbatical?

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Restricted Stock, RSUs, And Performance Shares

NEW! Restricted Stock Units After An Acquisition: Know What Could Happen

Any data on vesting schedules for restricted stock?

With restricted stock units and performance shares, can I defer the delivery of the shares at vesting? How is this taxed?

Can I reinvest my restricted stock dividends in more company stock instead of taking cash income now?

What types of company goals are most commonly set for performance shares and units? What do surveys show about the performance metrics and periods that companies use?

Do I get dividends with performance share awards? How are they taxed?

What would happen to my performance shares in an acquisition of my company?

What would happen to my unvested restricted stock or RSUs if I were to die or become disabled before the vesting date?

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Employee Stock Purchase Plans (ESPPs)

What are the different types of employee stock purchase plans? What are their features?

Will the price always be discounted from the fair market value of the stock? What do surveys show about corporate practices?

My company has a basic ESPP without a discount but also without commissions on purchase. Is the unpaid commission considered taxable compensation?

Do surveys show how employee stock purchase plans are changing with mandatory expensing and other developments?

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NQSOs

I'm no longer an employee, so why is there withholding on my NQSO or SARs exercise?

I have moved from one state to another. What happens with the taxes on my stock options if I live in different states during the period between grant and exercise?

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ISOs & AMT

I have moved from one state to another. What happens with the taxes on my stock options if I live in different states during the period between grant and exercise?

In general, how does the alternative minimum tax (AMT) calculation work?

What ISO strategies can help minimize AMT liability?

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Stock Appreciation Rights (SARs)

I'm no longer an employee, so why is there withholding on my NQSO or SARs exercise?

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Financial Planning

Advisors, Have You Heard About MSO Pro?
Tools to track and model grants for multiple clients, and proactive communications to build relationships. Selected by CPA Wealth Provider Magazine as one of the best new financial-planning products. Click here for more information.

NEW! Using Behavioral Finance To Shape Financial Planning For Stock Compensation

How Dividends Impact Your Strategy For Stock Options And Restricted Stock (Parts 1 and 2)

I plan to exercise options for stock that pays dividends. Are there any exercise strategies or at least mistakes to avoid?

When I take an international assignment, will taxes on my stock compensation be equalized?

What are margin loans? Can company stock be used as collateral?

Can I use my vested employee stock options as collateral for selling call options on my company stock?

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Job Events

NEW! 10 Ways Stock Compensation Can Make You Happier

NEW! What are the top 10 questions related to job termination that I should ask about my stock options, restricted stock/RSUs, or ESPP participation?

How Does Your Stock Plan Compare? (Parts 1 and 2)

Your Stock Grants May Come With Strings Attached

Watch For Noncompetes And Other Restrictive Covenants In Stock Grant Agreements

What is the likelihood of receiving a new-hire or periodic stock grant? Any survey data or common practices?

How much time do I have for exercising vested stock options after my employment ends?

What are the most common periods after termination during which stock options can be exercised? Does the reason (e.g. disability, early retirement) matter?

Can consultants or independent contractors be granted stock options or company stock? How common is this practice?

Does vesting continue while I am on a leave of absence or a sabbatical?

Can grants of restricted stock or RSUs have noncompete provisions?

How common are noncompete provisions in stock grants? What activities can trigger a noncompete provision?

How common are clawback provisions? Any survey data about their use?

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Life Events

NEW! Using Behavioral Finance To Shape Financial Planning For Stock Compensation

NEW! Disability And Death: What Happens To Stock Options, Restricted Stock/RSUs, And ESPP Participation?

NEW! What are the top 10 questions related to retirement planning that I should ask about my stock options, restricted stock/RSUs, or ESPP participation?

Divorce: What Happens To My Stock Options? (Parts 1-3)

Stock Options After Death: Learn Before It's Too Late (Part 1)

Retirement Planning With Your Stock Options And Other Stock Compensation (Parts 1-3)

How does a court determine whether my soon-to-be-former spouse should receive any part of my stock grant?

Are stock grants considered in determining child support and alimony payments?

If I receive stock options or restricted stock/RSUs after my spouse and I separate but before the divorce is finalized, are those grants subject to division in the divorce proceedings?

With options and restricted stock/RSUs, how do courts decide which grants are marital property? How do they divide grants that are?

Do stock option plans treat early retirement differently from ordinary retirement?

After I retire, will my company let my stock options or restricted stock continue to vest, or will it accelerate the vesting?

Would my death automatically accelerate the vesting of my stock grants?

What are common periods that stock plans allow for exercising stock options upon death?

What would happen to my unvested restricted stock or RSUs if I were to die or become disabled before the vesting date?

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SEC Law & Rule 10b5-1 Trading Plans

NEW PODCAST INCLUDED! Ten Compliance Concerns That Executives Must Understand To Prevent SEC, IRS, And Corporate Problems (Parts 1 and 2)

Is it possible to violate insider-trading laws by terminating or modifying my Rule 10b5-1 trading plan?

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M&A

NEW! Restricted Stock Units After An Acquisition: Know What Could Happen

My Company Is Being Acquired: What Happens To My Stock Options? (Part 1)

What will happen to my unvested stock grants if my company is acquired or if it merges with another company?

What would happen to my performance shares in an acquisition of my company?

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Pre-IPO

NEW! Has there been a tax-law change for stock options and restricted stock units (RSUs) in privately held companies?

How do I value options and stock in a privately held company?

How do pre-IPO and other private companies determine exercise prices?

In a privately held company, can restricted stock and stock option grants be structured so that they vest only when the company goes public or gets acquired? How is this taxed?

Why would a privately held company grant RSUs and not stock options?

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Tax Center

If I need to file an extension to complete my tax return after the IRS deadline, are there any mistakes I should avoid that involve stock grant income?

I have moved from one state to another. What happens with the taxes on my stock options if I live in different states during the period between grant and exercise?

I'm no longer an employee, so why is there withholding on my NQSO or SARs exercise?

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PODCASTS

NEW:

Compliance Concerns That Executives Must Understand To Prevent SEC, IRS, And Corporate Problems

Stock Option Terms: What You Can Expect

Restricted Stock Units After An Acquisition: Know What Could Happen

When To Wait, Hold, Or Sell: A Wealth Manager Reveals His Wisdom On Stock Option Exercise Strategy

Our podcasts are available on our website, at iTunes, and at Google Play Music.

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GLOSSARY

NEW:

cash award
double taxation
elective stock withholding
inducement award
notice of stock grant
retirement earnings test
special timing rule
T+2

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GLOBAL TAX GUIDE This is premium content

NEW:

Egypt
Turkey

UPDATES:

Brazil
Chile
France
Norway
United Kingdom

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ASK THE EXPERTS

NEW:

In February my broker sent me Form 1099-B for last year's stock sales, along with an additional supplemental form that provides more information on my cost basis. This relates to sales of shares that I acquired from a restricted stock unit (RSU) vesting and an ESPP purchase. What do I need to do with this information on my tax return?

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NONQUALIFIED DEFERRED COMPENSATION

A sample of the latest major additions and updates at our separate website myNQDC.com, a comprehensive publication about nonqualified deferred compensation:

How do I fit nonqualified deferred compensation into my financial plan?

At what time of year do I make my election to defer income? Is the timing different for performance-based compensation?

How did the IRS modify the Section 409A regulations in 2016?

Are NQDC plans affected by the Supreme Court's rulings on marriage equality?

I am a US executive moving overseas to work. When I live outside the United States, does the tax treatment change for deferrals and distributions under my nonqualified deferred compensation plan?

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CONTACT AND LICENSING INFORMATION

TO CONTACT THE EDITORS: editors@mystockoptions.com

TO LICENSE OUR CONTENT: sales@mystockoptions.com

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