You can read Part I here….

Tax Nerd Trigger Warning: Tax assumptions are extremely basic here, please don’t berate me.

In this piece I want to discuss the common questions and issues with regards to pre-IPO companies that issue stock option compensation to early employees.

Once the company has gone to market and hired a few dozen (or hundred) employees, ISO and/or Non-qualified stock options (“NQOs”) are very popular forms of equity compensation. From an economic standpoint, this just means the grant price (the strike price) to buy the stock is fixed, even if share value increases. …

Bob Dockendorff, JD, LLM

DIY Financial Advice

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