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NASPP Essentials

Tax Reporting Guide for Stock Plan Transactions
Nov 18,2020

A series of tables indicating where income attributable to various stock plan transactions is reported on Form W-2 and Form 1099-MISC.

Comparison of SARs to NQSOs
May 27,2020

A comparison between the attributes of stock and cash-settled SARs to NQSOs.

Stock-for-Stock Option Exercises
Dec 05,2018

This article reviews the mechanics of stock-for-stock exercises, as well as the tax, accounting, and securities law considerations.

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Latest Developments

IRS Extends Relief on Tax Deposits to RSUs and SSARs
Jul 13,2020

A procedural update to the Internal Revenue Manual clarifies instructions relating to the application of late-deposit penalties to tax withholding for NQSOs and extends existing penalty relief to restricted stock units and stock-settled SARs.

IRS Guidance on Timing of Income Inclusion and Tax Withholding for Equity Awards
Jul 10,2020

IRS GLAM 2020-004 clarifies when income is recognized and the company's tax withholding deposit liability accrues for nonqualified stock option exercises, stock-settled SAR exercises, and payouts of restricted stock units.

New US Tax Law Provides Tax Deferral Opportunity for Certain Private Company Equity Grants
Mar 07,2018

This alert from Morgan Lewis summaries new Section 83(i) of the tax code, which allows private companies to offer employees the opportunity to defer income for stock options and RSUs.

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Auto-Cancel Options: A Smart Way to Address an Old Problem
Mar 31,2020

This article by Infinite Equity proposes a solution for the age-old problem of underwater stock options.

Indexed Options: Sometimes Changes Is Good
Jan 16,2020

This article illustrates how tying option exercise prices to an index can result in a better compensation vehicle.

Implications of Modifying Underwater Share Options
Apr 01,2009

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.

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Underwater Stock Options: Is a Stock Price Forfeiture Provision the Answer?
Jan 16,2020
Jennifer Namazi

Could a stock price forfeiture provision in grant agreements solve the challenge of what to do about substantially underwater options?

Implementing an Auto Exercise Program for Stock Options
Jun 27,2019
Jennifer Namazi

Solving the conundrum of in-the-money stock options that expire unexercised.

IBM's Premium Priced Options
Apr 25,2017
Barbara Baksa

IBM's Premium Priced Options

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Sample Documents

Understanding Compensatory Stock Options
Nov 30,2018

This article submitted by Raymond James provides a review of the terminology, exercise techniques and tax treatment of stock options.

Sample Grant Cover Letter - Stock Option
Jul 19,2018

Sample cover letter to notify plan participants that they have received a stock option grant.

Sample Grant Notice--Three Things You Need to Know About Your Grant
Jul 19,2018

Sample notification to plan participants that they have received an award or stock option. Includes a list of three things participants need to know.

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Top Trends in Equity Plan Design
Oct 23,2019

Find out the latest practices and trends in stock compensation!

Trends and Analysis from the 2010 Stock Plan Design Survey
Aug 10,2010

Find out the latest practices and trends in stock compensation!


Surveys & Studies

Executive Summary and Selected Results for the 2019 Domestic Stock Plan Design Survey
Mar 10,2020

Key trends in the design of restricted stock/unit, performance award, and stock option programs.

2018 Top 250 Report
Nov 13,2018

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.

2017 Top 250 Report
Aug 25,2017

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.

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Regulations & Statutes

IRM Procedural Update: Waivers $100,000 Next Business Day Rules for NSO, SAR, and RSU Transactions
May 26,2020

Directive to IRS auditors to treat deposit liability for NQSO and SSAR exercises, as well as RSU payouts, as accruing on the settlement date, rather than the transaction date.

GLAM 2020-004: Income Inclusion and Application of FICA and FIT Withholding for Stock Awards
May 18,2020

This Generic Legal Advice Memorandum the timing of (i) income inclusion and application of FICA taxes and federal income tax withholding and (ii) the employer’s obligation to deposit withheld employment taxes occur with respect to NQSOs, stock-settled SARs, and restricted stock units (RSUs).

California Stock Option Guidelines
Jun 22,2019

CA FTB Publication 1004, which provides information on how stock compensation is taxed for both residents and nonresidents.

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The National Association of Stock Plan Professionals is the largest and oldest professional association for the stock and executive compensation community, with over two decades of leadership providing expert resources, education and other benefits for our more than 6,000 members across 32 affiliated chapters.


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