IANAL but citation needed. An ISO is granted against a certain point in time, and would be affected (as in, included) by a split at a future time. So in a 2:1 s

IANAL but citation needed. An ISO is granted against a certain point in time, and would be affected (as in, included) by a split at a future time. So in a 2:1 split you'd get double the shares at half the price. Other way simply doesn't work as that would screw your cost basis up and IRS would get all green and angry at you :) The easiest way to screw people is to issue another set of shares and dilute.