3 ms·
ELI5: "IRS tax artifacts" wrt to the 90 day window and how Amplitude is getting around it.
by phamilton 11y ago
ELI5: "IRS tax artifacts" wrt to the 90 day window and how Amplitude is getting around it.
- eropple 11y agoMore than that - they actually describe what those shares mean, rather than just throwing a number out there in a vacuum. I dig this.
- tptacek 11y agoEmployee stock options are designed to comply with the IRS rules for Incentive Stock Options (ISOs), which allow employees to receive and execute options without being taxed on their value; tax is assessed only when the stock is sold. To qualify as an ISO, options have to be exercised within 3 months of an employee leaving the company. The alternative seems to be to use NSOs, or (maybe?) ISOs that turn into NSOs; NSOs have tax implications at the time of exercise, but the point of giving employees NSOs is to allow them to defer exercise, perhaps to a point where the options are liquid (remember: most options aren't liquid; that's the problem with requiring them to be exercised --- it requires employees to spend money to receive illiquid speculative options).
- sjg007 11y agoHonestly, we should just lobby Congress to remove NSOs and make them ISOs by default.