A new year can be an opportune time to review your equity compensation package. Not only does this give you a clean slate to work with, it affords you the most time to plan and implement your strategy for the fresh calendar year ahead. When it comes to annual planning […]
employee stock options
9 Year-End Planning Tips for Your Equity Compensation
You might not give much thought to the equity compensation you receive throughout the year (until you’re forced to take action with it). But even if you do have a long-term plan in mind, it’s smart to pause periodically and review the overall strategy. The end of the year is […]
7 Things You Should Know About Incentive Stock Options
Incentive stock options (ISOs) are a form of compensation distributed by a company to their employees. Typically, companies use ISOs as a vehicle to retain top employees, reward specific milestones or successes or as an incentive when hiring new employees. ISOs can be a lucrative long-term compensation benefit, particularly if […]
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 […]
