How Do Stock Appreciation Rights Work?
Companies are getting more and more competitive (and creative) with their compensation packages to find, attract, and keep skilled professionals. And with that creativity of new forms of compensation, SARs, or stock appreciation rights, are starting to gain steam. How stock appreciation rights work is interesting: sort of like a morphing of nonqualified stock options […]
ISO Cashless Exercise Now vs. Wait & Exercise Later
Imagine a typical job searcher in Silicon Valley: She took a job at a tech company, and part of her compensation package was ISO (incentive stock options), but she assumed they wouldn’t be worth anything, so she didn’t bother with them. But then, suddenly, the company improved and an IPO was on the horizon. She […]
Exercise and Sell or Exercise and Hold – Stock Options Case Study
So your company just announced a tender offer or IPO. The rubber is about to meet the road, and you’ve got some decisions to make about what you’re going to do with your incentive stock options (ISO).You finally have the chance to cash in on your stock options, and if you’ve got the extra cash […]
ISO AMT and Cost Basis: What You Need to Know
If I had $1 for every time I spoke with smart (but slightly frazzled) startup employees trying to make sense of ISO AMT jargon, I could treat my wife and myself to a very nice dinner. 🥗 💑 🥂 Yeah, I know it’s not exactly millionaire lifestyle from that $1 per conversation, but it is […]
How Does the AMT Credit Carryforward Work with ISO?
Guys, let’s be honest… understanding the Alternative Minimum Tax (AMT) and how it works with Incentive Stock Options (ISOs) can be incredibly confusing. I’m not going to sugarcoat it. And unfortunately, it doesn’t look like the IRS is going to simplify the AMT credit carryforward with ISO anytime soon… so we’re doing our best to […]
How Do RSU Work: The Beginner’s Guide (Start Here)
Hands down, I find myself answering more questions about RSU (restricted stock units) than any other type of stock option. And it’s understandable: The way RSU work (not only with company vesting schedules but also with tax laws) is by far one of the most confusing financial concepts for startup or tech employees. But don’t […]
Double Trigger RSU Tax: 5 Ways to Avoid a Scary Tax Bill
First of all, if you’ve got a double trigger RSU that are about to settle. Congratulations! You’re about to come into a lot of money. Just be tax aware and avoid being caught unprepared by a scary tax bill. (And also, good on you for reading this article & being smart enough to figure out […]
ISO to NSO Conversion: Should You Convert Your Stock Options?
Ahh, the golden handcuffs. Those lovely things that keep you chained to your current job until the IPO. They’re not so bad if your company is going to IPO in a year or two, but with more and more companies delaying their IPO, it puts startup and private company employees in a pickle. Here’s why: […]
Selling Stock to Buy a House in 2024: Seven Steps
Buying a house is one of the biggest decisions of your life. ???? No matter where you live. Selling stock is a great strategy to buy a house with today’s high interest rates. But, it’s outright daunting. The basic numbers alone make it feel impossible: In San Francisco, the median home value in 2024 is […]