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Exercise of an Option

WilmerHale

Commonly Considered Option Program Enhancements: Part II - Early Exercisable Stock Options

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In the first part of this four-part series, we provided a high-level summary of stock option basics. In this second installment, we build on those basics and begin our exploration of stock option program “enhancements” by...more

Latham & Watkins LLP

Reminder: Employers Must Report 2022 ISO and ESPP Transactions

Latham & Watkins LLP on

Deadlines are approaching for employers to report employee exercises of incentive stock options and employee stock purchase plan purchases during 2022. Corporations that offer incentive stock options (ISOs) or maintain a...more

Barnea Jaffa Lande & Co.

Tax Aspects of Cryptocurrency-Based Compensation to Employees

Barnea Jaffa Lande & Co. on

Share-based compensation is the most popular reward method among employees and service providers in many industries today, especially the high-tech industry. From the grantee’s point of view, the receipt of options enables a...more

Goodwin

Private Companies: Time to Consider Repricing Underwater Stock Options?

Goodwin on

​​​​​​​Given recent market trends, many private companies have  seen valuations decline significantly, resulting in an increasing  number of service providers holding “underwater” or “out of  the money” stock options. As a...more

Lowenstein Sandler LLP

Early Exercise Stock Options

Lowenstein Sandler LLP on

Companies frequently consider whether to grant a stock option with the ability to exercise the option before it has vested, which is considered an “early exercise” right. In this episode of "Just Compensation", hosts Andrew...more

Holland & Hart - The Benefits Dial

Sitting on a dock of the bay, watching my post-termination exercise period, roll away: Tax considerations for modifying stock...

We are often asked by our private company clients about making changes to outstanding stock options. In some cases, changes to the number of shares subject to an option are needed, or to the vesting schedule, or to the...more

WilmerHale

Not So Fast…the (Unexpected) Consequences of Allowing Your Employees to Early Exercise Options

WilmerHale on

From time to time, and primarily when the economy is booming, allowing stock options to be “early exercised” - that is, allowing options to be exercised before they are vested - becomes in vogue. We are in one of those times....more

A&O Shearman

Private Company Fined for Failure to Comply with Rule 701 in Option Exercises

A&O Shearman on

On March 12, 2018, the United States Securities & Exchange Commission (the “SEC”) fined a late-stage private company $160,000 as a result of its failure to comply with the enhanced disclosure requirements of Rule 701 in...more

WilmerHale

Should Startups Extend the Window to Exercise Options?

WilmerHale on

Pinterest did it. Square did it. And Coinbase did it, too. These unicorns have all given departing employees more than the standard 90 days to exercise their stock options. They’ve extended the window to exercise options for...more

Smith Anderson

Taxing LLC Options (It’s Complicated)

Smith Anderson on

Options, warrants, convertible equity and convertible debt are all familiar tools of corporate finance. Taxing LLC Options covers the federal income taxation of non-compensatory options (NCOs) issued by partnerships and LLCs...more

Allen Matkins

When Does Optionee Have A Legally Binding Right To Shares – Vesting Or Exercise?

Allen Matkins on

Congress enacted Section 409A of the Internal Revenue Code in 2004. Given the statute’s complexity, the expense associated with compliance and its iron-fisted results, I’ve been amazed that there hasn’t been a greater clamor...more

McDermott Will & Emery

Treasury Finalizes Regulations on Noncompensatory Partnership Options

McDermott Will & Emery on

The U.S. Treasury Department recently released regulations on the tax treatment of noncompensatory options issued by a partnership, as well as proposed regulations addressing the threshold question of when a partnership...more

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