http://www.mystockoptions.com Our latest content on stock options, ESPPs, restricted stock, stock appreciation rights (SARs), and other stock option compensation for employees and executives. Copyright 2000-2010 myStockPlan.com, Inc. en-us Sat, 31 July 2010 07:05:00 EST http://www.mystockoptions.com/faq/index.cfm/ObjectID/6FC1A16F-0D06-44A6-A6B8CCD305110A93 These depend on various factors. You need to pay the following when you exercise stock options... http://www.mystockoptions.com/articles/index.cfm/ObjectID/74EAC00B-B691-4B54-B6FA8F5FD7900ED3 NEW! Your company's employee stock purchase plan (ESPP) may be one of the best benefits in your total compensation package. However, to maximize its value, you must know its key dates and terms. This article explainsMatt Simon http://www.mystockoptions.com/faq/index.cfm/ObjectID/337D3DE3-A155-425C-AEC1D0626B93D5C3 Companies have flexibility in setting the conditions on which their stock grants can vest. This allows your company to base the vesting of your grant on... http://www.mystockoptions.com/faq/index.cfm/ObjectID/E1BF8281-B3E3-4E19-861C5AB2EB3D731C At some companies, international assignments are often accompanied by what is commonly called an equalization package. To give you an incentive to accept the international assignment, the company agrees to... http://www.mystockoptions.com/articles/index.cfm/ObjectID/C3EB61CE-7C66-4451-8935FC15881B2364 NEW! Whether you are a novice or advanced investor, it can be hard to decide what to do with your company's stock grants. Should you exercise options now or wait? Should you hold company stock at vesting or sell it aBruce Brumberg http://www.mystockoptions.com/articles/index.cfm/ObjectID/33EBDE99-FB0E-40DE-BFFB14E7383F696C TENTH ANNIVERSARY SPECIAL! We at myStockOptions.com have seen a lot of changes since we launched the website back in June 2000. As part of our 10th-anniversary celebrations, this article reviews the top fivMatt Simon http://www.mystockoptions.com/faq/index.cfm/ObjectID/72358F50-F5C5-40FE-A6506F392B15B68E At least for senior executives, you can find useful information. You can either go to the... http://www.mystockoptions.com/faq/index.cfm/ObjectID/8A300DA8-5350-45CA-B2075CB4E391C1D8 Before you even analyze the decision, you should learn the basic facts and risks of the Section 83(b) election. Once you understand it, the election can make sense in certain circumstances, including... http://www.mystockoptions.com/articles/index.cfm/ObjectID/FF6EE2A4-E567-4125-85C84EAEE1E7F20F NEW! Restricted stock units (RSUs) have become the most popular alternative to stock options. While RSUs share many of the same issues as restricted stock, there are differences, and it is important to understand theMatt Simon http://www.mystockoptions.com/articles/index.cfm/ObjectID/9D5C35ED-9BCE-4771-9C1F41B6C5ADD302 NEW! The taxation of RSUs generally resembles that of restricted stock but carries some important differences.Matt Simon http://www.mystockoptions.com/faq/index.cfm/ObjectID/D943A1A3-30A9-11D4-B9080008C79F9E62 A clawback is triggered when you leave to work for a direct competitor or engage in... http://www.mystockoptions.com/faq/index.cfm/ObjectID/F17DE2AF-E9AB-11D4-AF76000102460375 You will need to gather certain information to complete Schedule D of your tax return. The broker will send you a Form 1099-B for the proceeds that you use to... http://www.mystockoptions.com/faq/index.cfm/ObjectID/03F444A7-FE52-41AD-9FDD6937B32A2F4C A concentrated stock position occurs when a significant chunk of your net worth is tied up in a single stock. Strategies for hedging, diversification, and liquidity include... http://www.mystockoptions.com/faq/index.cfm/ObjectID/A405E267-7518-456C-9270B6C065F853C2 Perhaps, depending on the structure of the plan. The IRS wants to know about foreign accounts of US taxpayers to be sure taxes are paid on any earnings. Any "US person" with a financial interest... http://www.mystockoptions.com/articles/index.cfm/ObjectID/69711083-E060-4AAB-A744826713284B70 NEW! Part 3 of this article series reviews the steps you must take to preserve your equity rights at or before the termination of your employment, and in any severance arrangement. The impact depends on your specificAlisa J. Baker http://www.mystockoptions.com/faq/index.cfm/ObjectID/E195D7B4-4B10-4B18-8245AE76BA97FD7C While it is hard to find data, we have located a few sources. The data and examples from the surveys summarized here show that... http://www.mystockoptions.com/faq/index.cfm/ObjectID/6847F0D7-3EDD-4E92-92101127CED96819 When an offering period spans more than one calendar year (with multiple six-month purchase periods), whatever you do not use up in year one will be... http://www.mystockoptions.com/faq/index.cfm/ObjectID/06C8A7C2-7812-4B15-8312CD3D17E92D64 The IRS can seize your stock options if it applies a federal tax lien to you for unpaid taxes. After seizing your stock options, the IRS can also... http://www.mystockoptions.com/faq/index.cfm/ObjectID/5D0ED5F5-7A9C-4657-995017987C2F8420 Companies often give employees access to their stock option, ESPP, and restricted stock holdings and transactions with paper statements and/or through a website. Apart from the W-2 and 1099 requirements, Section 6039(a) of the Internal Revenue Code re http://www.mystockoptions.com/articles/index.cfm/ObjectID/B1750B46-204C-477F-A2F82EE536C70D9A Your company may no longer be using stock options. Instead, it may be granting restricted stock, restricted stock units, or performance shares. While these grants don't carry the same upside as stock options, they have benefits you will surely appreciate once you understand their special features.Richard Friedman http://www.mystockoptions.com/articles/index.cfm/ObjectID/CE961D27-5033-4EFF-8518F871818CBD86 Your company has awarded you restricted stock. Restricted stock grants carry their own requirements, which you need to understand before you can profit from them. In Part 1 we discuss the rules and restrictions of vesting and sale.Bruce Brumberg and Kate Victory http://www.mystockoptions.com/articles/index.cfm/ObjectID/7D1D4DF4-494D-4B0A-AD73C126EBC1F881 In a growing trend, your company may let you choose between stock options and restricted stock. Which is better for you? Learn techniques to analyze your financial situation and goals so that you can make the right choice.Alan B. Ungar http://www.mystockoptions.com/articles/index.cfm/ObjectID/0E38632B-768F-4A08-A446B71F095C442E Avoid the mistakes others made during prior ups and downs in the stock markets. Common errors arise in nine different situations, including job termination, mergers, financial planning, term expiration, and various life events.Beth Walker http://www.mystockoptions.com/articles/index.cfm/ObjectID/FE607656-88F4-11D4-AF72000102460375 My clients want to exercise options shortly after they vest for a significant purchase, like a fancy boat or a sports car. The most expensive boat or car I can imagine is the one bought with your just-vested options. Tips I tell clients include not exercising too soon or waiting too long.W.E.B. Bantling http://www.mystockoptions.com/articles/index.cfm/ObjectID/5AA6918A-C556-11D4-AF76000102460375 You cannot cash in your stock options immediately. The options must first be vested, and you don't own them forever.Marilyn Renninger /taxguide/ The Global Tax Guide explains the taxation of equity awards in 32 countries: stock options, restricted stock, restricted stock units, performance shares, stock appreciation rights, and employee stock purchase plans. The country profiles are regularly reviewed and updated as needed. We do our best to keep the writing lively.The myStockOptions.com Tax Team http://www.mystockoptions.com/articles/index.cfm/ObjectID/6EE8774B-2A04-47CC-A6CD85D8394C56D3 With tax increases in mind, now may be a good time to re-evaluate your current financial-planning strategy. Should you take action with stock options now or wait until new rates apply? Part 1 looks at nonqualified stock options.Stanley Trotta with Robert Gordon http://www.mystockoptions.com/articles/index.cfm/ObjectID/8865D32B-3222-4449-B192B4C05392CEEF Although stock prices have risen from record lows, many employee stock options remain underwater. However, this is an opportune time to benefit from the current environment. This article presents a range of ideas to consider: buying stock now to swap later, exercising and holding ISOs, or making a Section 83(b) election for restricted stock.Chris Murphy http://www.mystockoptions.com/articles/index.cfm/ObjectID/B65CE489-AA17-4318-9A22487EC6465F4D Your option grant terms and the behavior of your company's stock price are only part of your financial-planning story in volatile markets. Equally important is the price movement of what you will buy with the proceeds from an option exercise and stock sale. As this article explains, relative changes in price, not absolute changes, are what matter.Tom Davison http://www.mystockoptions.com/articles/index.cfm/ObjectID/FEAFAEBB-3B83-4D15-9C3D77F1AF99FDF1 Your company's employee stock purchase plan (ESPP) may be one of the best employee benefits in your total compensation package. However, to maximize the value of your ESPP, you need to understand how it works. This starts with knowing its basic structure and key terms, and how ESPPs work in both up and down markets.Alisa Baker http://www.mystockoptions.com/articles/index.cfm/ObjectID/1F79CE87-535D-4ABD-BC3FE4CF06B86CAE After you decide to participate in your company's employee stock purchase plan, your next decision is whether to sell the stock soon after purchase or to hold it (and for how long). This article series examines different ways to participate in your ESPP according to relative risk tolerance, timeframe, and needs for money.Timothy A. Farmer and Gregory G. Geisler http://www.mystockoptions.com/articles/index.cfm/ObjectID/47878A79-AF88-4502-A8B536A069A95DD6 Stock compensation is important for retirement planning. Understand the issues and explore strategies, whether you are planning for retirement, are nearing retirement, or have retired already.Carol Cantrell http://www.mystockoptions.com/articles/index.cfm/ObjectID/337EC7FF-E522-4761-A1B4EA2C6069444E UPDATED! When you and your spouse decide to split, your stock options will probably be divided too. Become familiar with the crucial issues related to stock options in divorce, including the treatment of vested and unvested stock grants, approaches to valuation, and the division of options in the property settlement.Linda Olup http://www.mystockoptions.com/articles/index.cfm/ObjectID/B6B50749-16F1-44F7-AD1AE92686A6B35D UPDATED FOR 2010! Your ability to pay for college, and ultimately have more money for retirement, may rest on your company's stock plan and related financial planning. Part 1 helps you understand the impact that equity grants have on financial aid eligibility.Troy Onink http://www.mystockoptions.com/articles/index.cfm/ObjectID/D014F6E5-72B2-48A6-994BB222445373FE You're ready to delve deeper into how and when different taxes apply to ISOs, including the AMT. You need to consider taxes at exercise and at sale to put together a strategy that maximizes the value of your options.Marilyn Renninger http://www.mystockoptions.com/articles/index.cfm/ObjectID/A6D7D117-BF38-4EDA-AE2306F4C119A53E The tax reductions of the past few years have brought both good and bad news for holders of incentive stock options (ISOs). While you may have lower capital gains rates when you hold the shares long enough after exercise, it's harder to avoid the risks of the alternative minimum tax (AMT) and to fully recoup any AMT credit.Alan Ungar http://www.mystockoptions.com/articles/index.cfm/ObjectID/6DD2144B-A3F5-11D4-AF74000102460375 Several years ago I faced a new situation. I'd been working for a solid Fortune 500 company for a number of years and had a substantial number of stock options, mostly incentive stock options (ISOs). They were quite valuable. http://www.mystockoptions.com/articles/index.cfm/ObjectID/E9A2332B-D74B-4CCE-8C13F705E5191D33 Insider trading restrictions can cause constant headaches for executives and their companies. Rule 10b5-1 trading plans are an ideal solution when they are properly drafted and implemented.Darryl Rains and Sunil Kulkarni http://www.mystockoptions.com/articles/index.cfm/ObjectID/8AD65F4A-5869-4730-B89F4630E435C839 Understand the key issues and limits of hedging NQSOs, including company, SEC, and tax law constraints. Then you can analyze potential hedging strategies for your stock options, such as collars.Robert Gordon http://www.mystockoptions.com/articles/index.cfm/ObjectID/1976EF18-B270-4695-AC48DC23F9BDF663 For employees and executives, international travel and relocation are increasingly common. The taxation of "mobile employees" is always complex, and never more than with equity compensation. Part 1 introduces the key concepts and rules, including the sourcing and apportioning of income.Mark Miller http://www.mystockoptions.com/articles/index.cfm/ObjectID/EA85568D-C296-4762-A43690DDE5336450 The terms of your option grants, the terms of the M&A deal, and the valuation of your company's stock all affect the treatment of stock options in M&A. What happens to your unvested options is the main focus of concern.Richard Lintermans http://www.mystockoptions.com/articles/index.cfm/ObjectID/A070411E-7379-48BC-8215C9BA001E6E52 Your company is being acquired. You worry about losing your job and your valuable stock options. In Part 1 we looked at the importance of your option grant terms. Part 2 examines the acquisition's terms and the valuation of your company.Richard Lintermans