Re:Do the math on your stock options
by AndrewKemendo on Thursday December 31, 2015 @02:03PM
(#10819059)
Our lawyer put it all together.
It used to be standard practice until a bunch of executives used it in the 80s to cheat the system.
I should note that this plan cannot apply to executives, for that reason.
Also, before a 409a valuation wouldn't you just be better off granting the shares outright and having employees write a check for $20 or whatever?
Yes that's definitely easier, but if you have had a round of financing even before filing a 409a the "valuation" can be determined as far as the IRS in concerned.
It used to be standard practice until a bunch of executives used it in the 80s to cheat the system.
I should note that this plan cannot apply to executives, for that reason.
Also, before a 409a valuation wouldn't you just be better off granting the shares outright and having employees write a check for $20 or whatever?
Yes that's definitely easier, but if you have had a round of financing even before filing a 409a the "valuation" can be determined as far as the IRS in concerned.