Want to pay less in taxes from the sale of your incentive stock options? While you can’t completely avoid taxes on a profit when you exercise and sell shares from ISOs, you can potentially earn the right to pay at long-term capital gains tax rates — which are lower than […]
Articles
How to Create a Liquidation Plan for Your Restricted Stock Units
Restricted stock units are commonly used as a compensation tool by employers who want to reward and retain key employees. If you’re on the receiving end of restricted stock units, or RSUs, you could be set to financially benefit if you meet specific conditions set by your employer. The requisite […]
What Happens to Your Employee Stock Options When You Leave Your Company?
Even if you don’t have plans to leave anytime soon, it’s not unreasonable to consider what happens to your employee stock options when no longer work for your current employer. Whether due to a planned retirement after a long career, a new opportunity at another company, or an intentional sabbatical […]
How Do You Pay the Exercise Cost When You Exercise Your Employee Stock Options?
If you have employee stock options, you’ve likely spent time considering how and when to turn the value of those options into cash proceeds you can actually use. To turn stock employee stock options into cash, you have to exercise them. When you exercise, you are buying shares of company […]
How to Use a Stock Swap to Exercise Your Employee Stock Options
A stock swap can be a great strategy to use if you have employee stock options you’d like to exercise and hold. It allows you to use the fair market value (FMV) of company stock you already own to pay for the exercise cost of newly acquired employee stock option […]
Leverage on Your Employee Stock Options: Good or Bad (or Somewhere in Between)?
If you receive grants of employee stock options, you should understand the concept of leverage and how it can impact the value of your options. You can’t eliminate the issue of leverage altogether, as it is inherent in employee stock options. But knowing how, when, and by how much it […]
