Equity Compensation Advisor News: January 2013

POSTED ON January 29, 2013 BY Bill Dillhoefer

This news brief contains information to help financial advisors assist individuals with employee stock options and restricted shares by facilitating timely and prudent diversification decisions. ISO Planning Guidelines: If you have clients with Incentive Stock Options (ISOs) that have low Insight Ratios, be aware that it is prudent to exercise and hold them early in the year. This […]


AMT Calculation: Major Changes Under New Tax Law

POSTED ON January 25, 2013 BY Bill Dillhoefer

From the myStockOptions Blog While the American Taxpayer Relief Act (ATRA) did not end the alternative minimum tax (AMT), it has three provisions with a major impact on the AMT calculation. These are important for high-income taxpayers—particularly those who exercise incentive stock options. ATRA set the AMT income (AMTI) exemption amounts for 2012 at $50,600 for […]


Effects of the New Tax Law on Stock Compensation

POSTED ON January 9, 2013 BY Bill Dillhoefer

by Bruce Brumberg from the myStockOptions.com Blog Among all of its provisions that took effect on January 1, the American Taxpayer Relief Act does not have any that directly relate to stock compensation—though, of course, increases in the rates on income tax, capital gains, and dividends indirectly affect the value of equity awards. The following changes […]


How to Help Employees Better Value Stock Options as Compensation

POSTED ON January 8, 2013 BY Bill Dillhoefer

by Susan P. Convery, Ph.D., CPA, CMA; Anne M. Farrell, Ph.D., CPA, CGMA; Susan D. Krische, Ph.D., CA; and Karen L. Sedatole, Ph.D. From the Journal of Financial Planning Executive Summary Employee stock options (ESOs) are often used to compensate employees other than top executives; however, ESOs are complex and not well understood by employees. […]


Non-Qualified Stock Options Are Much Better Than They Sound

POSTED ON January 7, 2013 BY Bill Dillhoefer

by Dan Walter, Performensation Non-Qualified Stock Options (NQSOs, NQs, NSOs) should really be called Stock Options. Non-qualified (or non-statutory) makes them sound negative. The negative modifier simply refers to the fact that these stock options have no special section dedicated to them in the IRS tax code. Like Incentive Stock Options (ISOs), NQSOs are generally […]