2nd 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
Important recent updates in Canada, Chile, and the United Kingdom

GLOSSARY
Recent additions include elective stock withholding, plain-vanilla stock options, T+2, and more

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

NONQUALIFIED DEFERRED COMPENSATION
The latest additions and updates 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.

Tax Center

NEW! How might tax reform affect stock compensation?

NEW! How would the repeal of Obamacare affect stock compensation?

How does Obamacare affect my Medicare tax and stock compensation planning?

What are capital gains and capital losses? What are the capital gains tax rates?

Will my company be able to take a tax deduction for the value of my restricted stock, restricted stock units, performance shares, or stock options if my compensation already exceeds $1 million?

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ARTICLES, FAQs, AND VIDEOS

Basics

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

Why do companies shift from granting stock options to granting restricted stock units, and then sometimes back again to granting at least some stock options?

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

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

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

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Restricted Stock, RSUs, And Performance Shares

Which do companies grant more often: restricted stock or restricted stock units (RSUs)?

When and how is a grant of restricted stock or RSUs taxed?

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

What is a post-vest holding period?

Do I get dividends with restricted stock units? How are they taxed?

Do I forfeit my restricted stock if I leave the company before vesting?

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?

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Employee Stock Purchase Plans (ESPPs)

The Great Benefits Of Your Company's Employee Stock Purchase Plan

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

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

How common is it for an ESPP to have a mandatory holding period for purchased stock?

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NQSOs

What are capital gains and capital losses? What are the capital gains tax rates?

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ISOs & AMT

2017 UPDATES! Dr. Strange Tax, Or: How I Learned To Stop Worrying And Love The AMT

2017 UPDATES! Are there guidelines for calculating AMT trigger points? For example, if my spouse and I earn $200,000 per year, will we trigger the AMT when I exercise ISOs?

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

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Stock Appreciation Rights (SARs)

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

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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! What are the top 10 questions that I should answer before making a financial plan with my stock compensation?

NEW! How might tax reform affect stock compensation?

My income next year will trigger higher taxes, including the 3.8% Medicare surtax on capital gains. If I sell stock this year, I can avoid these taxes. What issues should I consider?

Next year I may be in a higher tax bracket. I am thinking about exercising my nonqualified stock options before then to accelerate income into this year. What issues do I need to think about?

Will my company be able to take a tax deduction for the value of my restricted stock, restricted stock units, performance shares, or stock options if my compensation already exceeds $1 million?

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Job Events

Do companies grant stock options or restricted stock to directors? Any survey data on director grants?

Do I forfeit my restricted stock if I leave the company before vesting?

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

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Life Events

NEW! The Great Drawdown: How To Optimize Stock-Based Compensation For Retirement Planning

NEW PODCAST INCLUDED! Divorce: What Happens To My Stock Options? (Parts 1-3)

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?

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

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SEC Law & Rule 10b5-1 Trading Plans

What is insider tipping?

Do the rules of insider trading and tipping apply only in business contexts? Do they also apply to what I tell friends and family?

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M&A

NEW! Why do I need to complete IRS Form W-9 when the company where I work is being acquired?

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

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Pre-IPO

How do privately held companies create liquidity for employees' options and stock, other than going public or getting acquired?

Is the tax treatment different if I work for a pre-IPO company? For example, are taxes delayed at exercise until the stock is registered with the SEC?

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PODCASTS

NEW:

Divorce: What Happens To My Stock Compensation?

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:

Elective Stock Withholding
Form 2210
HMRC
PAYE
Plain-Vanilla Stock Options
S-1
S-3
Share-Based Compensation
Share-Counting
Special Timing Rule
T+2

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GLOBAL TAX GUIDE This is premium content

UPDATES:

Canada
Chile
United Kingdom

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ASK THE EXPERTS

NEW:

I have a big vesting of restricted stock units coming up. With RSUs, my company automatically withholds shares for taxes at vesting. The amount withheld for federal income tax is 25% of the grant value on the vesting date. That rate is much lower than my marginal tax rate. Will I need to pay estimated taxes?

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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:

NEW! The Proposed GOP/Trump Tax Cuts: Good Or Bad For Pretax Compensation Deferral?

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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