3 ms·
Beware, asking for stock instead of options can be worse. If you are granted stock, you are being given something of value, and you must pay taxes as if it was
by jannotti 11y ago
Beware, asking for stock instead of options can be worse. If you are granted stock, you are being given something of value, and you must pay taxes as if it was income on the "fair value" (which, admittedly, may be low).
If you are given options, as long as the strike price is current value, you are not on the hook for any taxes until/unless you exercise them at a higher price. (ISO vs Non-qualified affects the details on that, but the point about stock grants remains.)