Re:We need to rethink employee compensation
by areyousure on Wednesday June 24, 2015 @08:37PM
(#9775341)
I think this hits the target.
As far as I understand, granting an option now with a currently "fair" strike price which "vests" in the future (but only if the person is still employed), does not create a taxable event at the time of vesting. However, granting an option in the future at the exact same strike price at the exact same time, creates a taxable event.
So my understanding is that option vesting is "simply" tax-preferred.
As far as I understand, granting an option now with a currently "fair" strike price which "vests" in the future (but only if the person is still employed), does not create a taxable event at the time of vesting. However, granting an option in the future at the exact same strike price at the exact same time, creates a taxable event.
So my understanding is that option vesting is "simply" tax-preferred.