Company stock options

Hi,

Not that long ago I’ve been granted a certain amount of company stock options as a Christmas bonus (the company is listed on the US stock exchange. Basically I can buy some shares at a predefined price.

The last step is to accept the grant or not. It seems to me that it can be only beneficial, however before I accept it I would like to ask my fellow Mustachians: Has anyone of you some experience with this kind of securities? Is there something peculiar that I should be aware? Are there some risks/tax implications?

Many thanks!
Frugo

Hi Frugo,

Basically your company is granting you options on its stock at a predifined price as a christmas gift, feel free to correct my understanding should it be incorrect.

Basically, this gift will be requalified as salary and accordingly it would result a tax liability. To the question should you accept the grant or not? Do you have any other option, i.e. can you refuse and get cash instead?

I hope this helps :slight_smile:

You’re totally correct, that’s what it is.

Unfortunately, there’s no other option but to take these options :smiley:
However, I’ve done some research and it becomes taxable only at the moment of exercise, so I accepted and I wish the best for the company now more than ever :wink:

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