Sitting On a Dock of the Bay, watching my post-termination exercise period, roll away
Tax considerations for modifying stock options to extend the post-termination exercise period
by John Ludlum
We are often asked by our private company clients about making changes to outstanding stock options. In some cases, changes to the number of shares subject to an option are needed, or to the vesting schedule, or to the allowed payment forms for exercising the option. The rules affecting these decisions come from several, primarily tax, authorities, and the implications to the option and the company are quite varied depending on the change being made.
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