by Alan Hall for Forbes Magazine: 8/21/12 This is a very informative article that explains and advocates the use of employee stock option plans. Summary……. employee stock options can foster the twin goals of increasing worker productivity by providing economic stakes in the success of the company while at the same time enabling employees to achieve […]
Month: August 2012
The Myths and Truths of Equity Compensation
Employee stock options and grants of company stock can be very confusing for recipients regardless of the lengths companies go to provide education on these programs. Consequently, misconceptions materialize and are held as facts that are then propagated by water cooler discussions. Here are the major misconceptions concerning equity compensations and the associated truths: Myth 1: Getting assistance or […]
What Are Incentive Stock Options (ISOs) – Taxation, Pros & Cons
by Mark Cussen, CFP Most employee stock programs are designed to benefit either rank-and-file employees or all types of employees at a company. However, there is one type of stock option plan that is usually only available to executives and upper management. Incentive stock options (ISOs), also known as qualified or statutory stock options, resemble […]
A New Look at the Leverage in Employee Stock Options
The leverage inherent in employee stock options has always been addressed in StockOpter.com, but there is a new table that now provides additional insight. Keep in mind that stock options have leverage because they are granted at a fixed exercise price. Consequently, a stock price change of 10% will yield a higher percentage change in […]