Trends in Private Company Stock Plans and How They Effect Advisors

According to a recent post by Barbra Baksa of the National Association of Stock Plan Professionals, a soon to be released NASPP’s survey on equity compensation at private companies found the following five trends: #1: Stock options are the equity vehicle of choice, with 74% of respondents granting them. #2: Private companies are committed to ISOs, with close to 60% of private companies that offer stock options granting them. #3: For most private companies, when deciding whom to grant to,...

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Performance Awards: 3 Truths... and a Lie

Recently, Fidelity Stock Plan Services and ClearBridge Compensation Group assessed the alignment between Performance Awards and a company’s performance. Accessing data and researching deep into company grant practices and Performance Award payouts, they specifically looked for factors which impacted the pay‑for‑performance relationship to help determine whether or not an ideal mix of equity vehicles exists. For this study, ClearBridge analyzed Performance Award Data collected from Fidelity Stock Plan Services for two hundred Fidelity clients with share-based Performance Awards that had...

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Answers to 7 Common Questions Regarding Employee Stock Options

Jim Wulforst provides some answers to 7 common questions from employees receiving stock options. What are the most common types of employee stock offerings? What’s the difference between “incentive” and “non-qualified” stock options? What about taxes?  How do I know whether to hold or sell after I exercise? I believe in my company’s future. How much of its stock should I own?  I work for a privately-held startup. If this company never goes public or is purchased by another company before going...

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