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Research Center : Article

Mar 01,2008 | Towers Perrin

Potential Tax Problems for Restricted Stock Held by Retirement-Eligible Individuals

In the shift away from an exclusive reliance on stock options over the last several years, a number of large employers have added restricted stock to equity awards in the mix of long-term incentives for executives. This increased reliance on restricted stock has required companies to become more familiar with some relatively subtle tax issues that can sometimes arise with respect to these types of awards. Recently, some companies have discovered that they should have been reporting taxable compensation (and withholding tax from recipients) at the time before the stock vests with respect to This article provides answers to questions to help you determine whether this problem applies to your company and, if so, how it can be addressed.

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