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Incentive Stock Options

Foley & Lardner LLP

Unlocking the Power of Equity-Based Incentive Compensation: An Overview of Incentive Stock Options (ISOs)

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This article is the third in our series on equity-based compensation intended to assist employers with answering a common question: What type of equity compensation award is best for our company and our employees?...more

Foley & Lardner LLP

Unlocking the Power of Equity-Based Incentive Compensation: Basics of Nonqualified Stock Options and Stock-Settled Stock...

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This article is the second in our series on equity-based compensation intended to assist employers with answering a common question:  What type of equity compensation award is best for our company and our employees? ...more

Opportune LLP

Total Shareholder Return Plans: Accounting Implications & Valuation Assumptions

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In a competitive talent market, companies are reevaluating executive compensation packages to attract and retain top leadership. Compensation generally includes a base level of compensation combined with some form of...more

Bowditch & Dewey

Issuing Stock Options? Be Careful!

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Many corporations use stock options to incentivize employees and other service providers. A stock option is a right granted by a corporation to an employee, consultant or advisor that provides such employee, consultant or...more

Holland & Hart - The Benefits Dial

I Seen a Girl on a One-Way Corridor, Stealing Down a Wrong-Way Street – Tax Opportunities with ISOs in M&A

by John Ludlum Incentive Stock Options (“ISOs”) have a somewhat legendary status as equity incentives for technology and other early-stage companies. It is true that ISOs are one of two types of equity awards that can achieve...more

Lowenstein Sandler LLP

The ABCs of LLC Equity Compensation

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On this episode of “Just Compensation,” Darren Goodman, Sophia Mokotoff, and Taryn E. Cannataro discuss equity compensation that can be issued by partnerships, with a special focus on profits interests. Profits interests are...more

PilieroMazza PLLC

Unlocking the Potential of Phantom Equity: Incentive and Compensation Strategies to Attract and Retain Top Talent

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Navigating the landscape of employee incentives can be complex, particularly when exploring non-traditional compensation methods. Phantom stock, also known as synthetic equity, offers a unique solution for business owners...more

Latham & Watkins LLP

Paying the Premium: An Alternate Approach to Repricing Underwater Options - February 2024

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Can we keep our heads (and options) above water? As we enter the middle of the first quarter of 2024, many management teams and boards are still asking themselves this question. Volatility in equity markets has, for many...more

Snell & Wilmer

Certain Information Statements for ISOs and ESPPs Due by January 31, 2024

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As reported in Part 4 of our 2022 End of Year Plan Sponsor “To Do” List, Section 6039 of the Internal Revenue Code (the “Code”) requires employers to provide a written information statement to each employee or former...more

Mintz - Employment Viewpoints

Corporations with 10 or More ISO or ESPP Reporting Obligations on Forms 3921 or 3922 Should Take Notice of Revised Electronic...

Each year, corporations that have employees who exercise incentive stock options (ISOs) as described under Section 422(b) of the Internal Revenue Code must file a Form 3921 with the IRS for each transfer of stock to those...more

WilmerHale

Upcoming Deadlines for Reporting 2023 Incentive Stock Option Exercises and ESPP Stock Transfers

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Section 6039 of the Internal Revenue Code (Section 6039) requires corporations to file returns with the Internal Revenue Service (IRS) and provide information statements to employees reporting exercises of incentive stock...more

Orrick, Herrington & Sutcliffe LLP

Annual Reporting Requirements for Incentive Stock Options and Employee Stock Purchase Plans - January 2024

Requirement to Report For (1) any exercise of an incentive stock option (ISO) during 2023 or (2) transfer during 2023 of a share previously purchased pursuant to a tax-qualified employee stock purchase plan (ESPP), the...more

Goodwin

Deadline Approaching for Reporting 2023 ISO Exercises and ESPP Transfers

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Section 6039 of the Internal Revenue Code requires corporations to provide information statements to employees (including former employees) and information filings to the IRS regarding exercises of incentive stock options...more

Cooley LLP

Year-End Reporting for ISO Exercises and ESPP Stock Transfers - January 2024

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This alert serves as a reminder of certain year-end reporting requirements imposed under Section 6039 of the Internal Revenue Code of 1986, as amended, with respect to...more

Latham & Watkins LLP

Reminder: Employers Must Report 2023 ISO and ESPP Transactions

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Deadlines are approaching for employers to report employee exercises of incentive stock options and employee stock purchase plan purchases during 2023. Corporations that offer incentive stock options (ISOs) or maintain a...more

Wilson Sonsini Goodrich & Rosati

Action Required: Share Transfers Pursuant to ISO Exercises and ESPP Purchases

Companies frequently grant tax-advantaged incentive stock options (ISOs) or sponsor a tax-advantaged employee stock purchase plan (an ESPP) to provide tax-advantaged equity incentives to employees that are U.S. taxpayers. One...more

Snell & Wilmer

2023 End of Year Plan Sponsor “To Do” List (Part 4) Executive Compensation

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As 2023 comes to an end, we are pleased to present our traditional End of Year Plan Sponsor “To Do” Lists. This year, we present our To Do Lists in four separate SW Benefits Updates. Part 1 covered health and welfare plan...more

Fenwick & West LLP

IRS Filing and Reporting Requirements for ISO…

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This Client Alert is intended to remind you of certain year-end reporting requirements under Section 6039 of the Internal Revenue Code of 1986, as amended (the “Code”), with respect to stock issued to employees (or former...more

Holland & Hart - The Benefits Dial

I’ve Been Trying to Get Down to the Heart of the Matter – the Board Action

If you ever want to see a benefits lawyer get nervous, start talking about corporate intent. Yes, the company intended to grant options at an earlier and lower exercise price, and yes it may have made promises to the...more

Sherman & Howard L.L.C.

Happy Employee Ownership Month!

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October is Employee Ownership Month. Employee ownership can take many forms, from 100% employee ownership through an ESOP or a cooperative to synthetic equity plans where no actual equity is sold, but employees participate...more

WilmerHale

Repricing Options 101: What Startups Need to Know

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Equity compensation is perhaps the most critical element of any startup company’s compensation package, helping to bridge the gap between the cash compensation a startup can offer against the more significant cash...more

WilmerHale

Repricing Options: What Every Private Company Needs to Know

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Stock options are typically a critical component of a private company’s ability to recruit, incentivize and retain key talent. Particularly for early-stage companies, rewarding equity packages can help make up for the gap...more

WilmerHale

Public Company Stock Option Repricings: A Primer

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Stock options are often a significant, and critical, component of a public company’s compensation and benefits programs as they align the interests of employees and stockholders—when the company’s stock price increases,...more

King & Spalding

Threading the Needle in “Tax-Free” Spinoffs

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With the rise in inflation and downturn in economies, spin-offs have become an increasingly popular method of unlocking shareholder value in a down market. Often, the ability to obtain tax-free treatment in the U.S. for the...more

WilmerHale

Commonly Considered Option Program Enhancements: Part IV - Employee Loans To Purchase Shares

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Consider this fairly typical situation. Four years ago, employee Emma was granted an incentive stock option (ISO) to purchase 100,000 shares with an exercise price of $0.86 per share. Emma’s award is fully-vested and she...more

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