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The tax law only required it for ISOs. Companies were doing it for Non-qualified Stock Options as well, mostly because they could get away with it.
by usaar333 9y ago
The tax law only required it for ISOs. Companies were doing it for Non-qualified Stock Options as well, mostly because they could get away with it.
- phonon 9y agoIt's actually worse than that--you can have an option that's an ISO if exercised within 90 days of termination, and otherwise an NSO if exercised outside that period (say up to a year, or even 10 years). The only reason to not do it that way is because you hope some leaving employees will just let the options lapse.