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Yep. That isn't about publicly traded companies. The only people that would panic is if you are in a startup that cannot exercise.
by ransom1538 9y ago
Yep. That isn't about publicly traded companies. The only people that would panic is if you are in a startup that cannot exercise.
- hatred 9y agoYeah, mostly applies to pre-IPO companies offering stock options/RSU's.
- pc2g4d 9y agoLarge publicly-traded companies can also offer RSUs---doesn't this still apply in that scenario?
- kelnos 9y agoIn practice, RSUs already work that way: you're taxed on RSU delivery, which in the case of a public company is almost always the same as the vest date. Usually the company will sell a portion of the RSUs vested to do tax withholding on the spot, and then you're immediately free to hold or sell the remainder. I the case of a private company, RSU vesting/delivery means you owe taxes but (usually) can't sell them to pay for it, which is (also) no different from today.
- bdamm 9y agoI'm under the belief that vest for tax purposes isn't until the share becomes liquid. If the startup can't exercise then, for tax purposes, has the share vested? I believe it has not (and have, in the past, filed taxes on this belief, with the support of my accountant.)
- 10dpd 9y agoYou're describing how things are now and have missed the point - this bill will mean that you will have to pay tax on vesting.