The Stock Options Book

(4 customer reviews)

$8.37

Author(s)

,

,

Format

PDF

Pages

405

Published Date

2017

452 People watching this product now!
Category:
Description

The Stock Options Book is intended to give the reader a general overview of how stock options are used in the United States to reward employees for their participation in and commitment to the success of the employer corporation (referred to variously here as the “company” or the “employer”). Stock options are but one of several forms of equity incentives, which may range from restricted stock arrangements to outright gifts of stock. For the sake of keeping this discussion focused, these other forms of equity incentives are covered only briefly here.

Introduction:

There are two basic kinds of stock options: (1) “qualified” or “statutory” stock options, including incentive stock options (ISOs) and employee stock purchase plan (ESPP) options, which are specific creatures of the Internal Revenue Code of 1986 (the “Code”), as amended, and (2) all other stock options, called “nonstatutory” or “nonqualified” stock options (NSOs). This book carefully examines the tax aspects of employee stock options and cites appropriate authority on tax issues. However, the days when the equity compensation professional could feel free to review tax aspects of employee stock options in a vacuum are long past.

Options are subject to a complex web of rules regarding their creation and exercise that are unrelated to the Code, including federal and state securities laws, accounting standards, and country-specific laws governing grants made to employees resident outside of the United States. Therefore, as appropriate, this book gives an overview of how non-tax rules apply and indicates the types of issues raised by the interaction of these rules. Readers should note that the discussion is intended to provide only general planning guidance; where appropriate, we have provided references to authoritative sources on these subjects.

The main body of The Stock Options Book is divided into three parts. Part I provides an overview of stock option plans, employee stock purchase plans, and, briefly, other forms of equity compensation, focusing on the tax aspects; Part II explores technical issues such as accounting (including 2016 amendments to Accounting Standards Codification Topic 718), securities, and tax compliance requirements; Part III looks at current ongoing regulatory issues, including the latest hot topics. Where helpful, illustrative tables are included. At the end of the book, there are supporting materials, including an article by NCEO cofounder Corey Rosen on designing a broad-based plan; primary sources; a glossary; and a bibliography.

As a caveat, it is important to remember that the use of equity incentives is under ever-increasing scrutiny by the Internal Revenue Service (IRS), the accounting profession (as represented by the Financial Accounting Standards Board [FASB]), the Securities and Exchange Commission (SEC), and Congress. When the original form of this text was first published in the early 1990s, stock option planning was a relatively esoteric function of tax and compensation design. Although this book generally describes current areas of ambiguity, the equity compensation professional must be aware that complex issues will continue to arise with respect to individual options and option plans. Each situation should always be reviewed carefully with legal and accounting experts to ensure compliance with the most current rules.

Contents:

  • The Basics of Stock Options
  • Tax Treatment of Nonstatutory Stock Options
  • Tax Treatment of Incentive Stock Options
  • Plan Design and Administration
  • Employee Stock Purchase Plans
  • Trends in Equity Compensation: An Overview
  • Financing the Purchase of Stock Options
  • Overview of Securities Law Issues
  • Tax Law Compliance Issues
  • Basic Accounting Issues
  • Tax Treatment of Options on Death and Divorce
  • Post-Termination Option Issues
  • Legislative and Regulatory Initiatives Related to Stock Options: History and Status
  • Cases Affecting Equity Compensation
  • Transferable Options
  • Reloads, Evergreens, Repricings, and Exchanges
The Stock Options Book By Alison Wright, Alisa J. Baker, Pam Chernoff pdf
4.8
4 reviews
3
1
0
0
0

4 reviews for The Stock Options Book

Clear filters
  1. Regina Marquez (verified owner)

    The Stock Option Book is a valuable source of authoritative current knowledge and thinking about stock options for readers whose background may be business, professional, academia, or government. To be effective, a book of this nature should offer a broad perspective. The experiences of a broad range of experts is more important than that of a single expert. Editor Scott Rodrick of the National Center for Employee Ownership has chosen some of the best known stock option experts to contribute to this book. All have been actively involved in the evolution of employee stock option plans. Each chapter in the book stands alone and is complete in itself. While this produces some overlap in certain of the chapters, it eliminates the need for the reader to refer to other chapters, and it provides valuable reinforcement of important concepts. This book is another excellent publication about employee ownership and participation published by the National Center for Employee Ownership.

  2. Mekhi Oliver (verified owner)

    This book is an invaluable reference for any business owner or advisor contemplating the use of stock options to improve a company’s performance, motivate employees and create an ownership culture. The National Center for Employee Ownership, the impetus behind this book, is a national treasure, as far as I’m concerned. Their mandate is to democratize the workplace to best reflect the demands and dynamics of the 21st Century Global Economy. This book uniquely addresses everything a company needs to consider regarding stock options: the business, financial, accounting, legal, securities and human resources/organizational development aspects. You cannot find a better resource or more accessible book in the stock options arena.

  3. Camille Jimenez (verified owner)

    This was a good, concise overview of stock options, but most of the detail concerned tax treatment of various situations. Not being a tax person or accountant, I could still get some good information about my company’s stock option plan but I would recommend this book only to people with a good basic understanding of accounting and tax rules.

  4. Silas Stevenson (verified owner)

    This book was very helpful in understanding a situation I encountered.

Only logged in customers who have purchased this product may leave a review.