Market Volatility and Employee Stock Option Values

The stock market has been on a roller coaster over the last few month, but in general the S&P 500 index is still near its all time high. Consequently, most employee stock options granted in the last ten years are likely to be significantly "In-the-Money" (current stock price above the grant price) as illustrated by the above chart. This chart shows the S&P 500 over the past decade. It can be used as a general representation of the prices at which companies...

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NQSO No No

IMAGE: Gemma Evans/UnSplash.com Too often I hear from financial advisors that their clients are considering exercising their non-qualified employee stock options (NQSOs) early (i.e. several years prior to expiration) and holding the shares for at least 1 year to get long term capital gains tax rates when they sell the shares. This may seem like a reasonable tax strategy, but it really isn't and here's what clients need to know. Unlike Incentive Stock Options (ISOs), NQSOs are NOT tax advantageous....

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5 Things You Should Know About Your Employer Stock & Options

This infographic can be used to promote professional equity compensation guidance to clients and prospects that receive company stock and options. These five concepts are included in the StockOpter.com client deliverables.  They have proven to be very effective at engaging stock plan recipients and helping them to make timely, informed and profitable decisions. These concepts are not illustrated on stock plan participant portals or using general financial planning tools. Click here for a printable PDF version of this document or...

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8 Terms To Understand Regarding Your Stock Compensation

IMAGE: Nonwarit / 123RF Stock Photo If you have recently started receiving stock compensation from your employer or are considering going to work for a new firm that offers equity as part of their compensation package, here are eight terms that you may need to understand. 1) Stock Options: If you receive employee stock options, your employer is offering you the right to purchase shares of the company stock at a predetermined price and for a specified period of time. ...

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Four Financial Ideas on Your Work Anniversary

By David C. Gratke, Principal at Gratke Wealth, LLC It’s another work anniversary and a good time to reflect on where you are in your career both professionally and financially. It couldn’t be a better time to also take stock of where your overall financial plan is currently, and whether or not you are on track to make work optional. Here are four smart financial ideas to consider on this work anniversary. 1) Rule of 1/3rds- Your work anniversary often...

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Legislative Update: Empowering Employees Through Stock Ownership Act Resurfaces In The Senate

IMAGE: Jordan Kidds / 123rf.com This blog post is provided by myStockOptions.com, a leading source of educational content on all types of stock compensation. While stock options continue to be popular at startups and other pre-IPO companies, employees cannot sell stock at exercise to pay the exercise price and the taxes on the income. Moreover, under current law those taxes cannot be delayed. Last year, an encouraging legislative proposal was introduced in the House of Representatives to address this issue....

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Six Trends in Performance Awards

IMAGE: Przemyslaw Koch / 123rf.com Barbara Baksa, Executive Director of the National Association of Stock Plan Professionals (NASPP) identifies six trends in the usage of performance awards, from the 2016 Domestic Stock Plan Design Survey, co-sponsored by the NASPP and Deloitte Consulting. Trend #1: Performance awards are on the rise for executives. Over the past four survey cycles, we’ve seen a more than 100% increase in the use of performance awards at the NEO and senior executive levels. For NEOs,...

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How Do You Spell "Vested RSU"?

by Sheri Iannetta Cupo, CFP, Partner and Wealth Manager at SageBroadview Especially when it comes to company stock plans, acronyms abound. Someday, I’m going to invent a secret decoder ring that translates each one into something approaching English. I’ll make a bazillion dollars and retire. In the meantime, let’s decode one important acronym that can sometimes spell confusion for busy professionals: Restricted Stock Units (RSUs). RSUs, Decoded Many corporate executives and valued employees may be receiving vested RSUs around this...

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5 Things You Must Know If You Get Paid With Equity

IMAGE: Tupungato / 123rf.com By Geoffrey Zimmerman Does your compensation package include more than just salary and benefits? Stock Options and other forms of equity compensation from your employer can be a key driver in building personal wealth as your company grows and succeeds. But it’s important to understand how to manage your equity properly and prudently. Here are five things you must know about your equity compensation: 1. What type of equity compensation is it? Equity compensation comes in...

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Five Trends in Restricted Stock/Units

Barbara Baksa, Executive Director of the National Association of Stock Plan Professionals (NASPP) identifies five trends in the usage of restricted stock and units, from the 2016 Domestic Stock Plan Design Survey, co-sponsored by the NASPP and Deloitte Consulting. Trend #1: Use of time-based stock grants and awards is still on the rise. The percentage of companies issuing stock grants and awards increased by 10 percent since our last survey (up from 81 percent in our 2013 survey to 89...

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