This article reviews the mechanics of stock-for-stock exercises, as well as the tax, accounting, and securities law considerations.
Under Section 6039 of the Internal Revenue Code, employers must file returns with the IRS for employees who have exercised incentive stock options during the year or transferred shares acquired pursuant to Section 423 qualified employee stock purchase plans. This article provides an in-depth summary of the mechanics of preparing the filings on Form 3921 (ISOs) and Form 3922 (ESPPs) that are necessary to fulfill this requirement.
This article provides an overview of incentive stock options, including characteristics, requirements, and tax treatment.
Participant statements required under Section 6039 are due by January 31. Here's what you need to know.
This article by Infinite Equity proposes a solution for the age-old problem of underwater stock options.
Under Section 6039, participant statements for ISOs and ESPPs must be distributed by January 31.
Many companies, knowing that out-of-the-money, or underwater, share options can affect
the morale and retention of key employees, are considering whether and how to modify
outstanding awards. Companies exploring strategies should understand their accounting
implications as well as the business, organizational, and regulatory concerns that are the
context for the strategies. This edition of Defining Issues describes the accounting implications
of the more common approaches and some basic factors that should be considered when a
company tailors a strategy to its specific circumstances.
Could a stock price forfeiture provision in grant agreements solve the challenge of what to do about substantially underwater options?
Solving the conundrum of in-the-money stock options that expire unexercised.
Forms 3921 and 3922 are now available as online fillable forms. Sort of.
This article submitted by Raymond James provides a review of the terminology, exercise techniques and tax treatment of stock options.
Sample cover letter to notify plan participants that they have received a stock option grant.
Sample notification to plan participants that they have received an award or stock option. Includes a list of three things participants need to know.
Find out the latest practices and trends in stock compensation!
Key trends in the design of restricted stock/unit, performance award, and stock option programs.
This 46th annual FW Cook Top 250 Report details the long-term incentive practices and trends of the 250 largest
companies in the Standard & Poor’s (“S&P”) 500.
This report presents information on long-term incentives granted to executives at the 250 largest U.S. companies in the S&P 500. The report covers LTI grant types and usage by industry, equity mix, vesting and other award terms, performance plan characteristics, CEO LTI grant value mix, and performance measure adjustments for impact of currency fluctuations.
CA FTB Publication 1004, which provides information on how stock compensation is taxed for both residents and nonresidents.
The text of Section 422 of the Internal Revenue Code, which defines incentive stock options.
IRS Form 3921, used to report ISO exercises.
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