4 ms·
Couldn't they grant new options to the employees whose options expire? An IPO seems like a pretty big hammer for that particular nail.
by twblalock 6y ago
Couldn't they grant new options to the employees whose options expire?
An IPO seems like a pretty big hammer for that particular nail.
- beambot 6y agoGranting new options causes tax headaches: If strike price << fair market value, you get taxed immediately on the illiquid gains.
- refurb 6y agoAt granting? I get annual option from my $10B+ annual revenue employer (where strike price < current stock price) and I don't pay tax until the options vest and I choose to exercise. Then I just sell-to-cover.
- twblalock 6y agoThat depends on the type of options. Some are only taxable at exercise.