stock option

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stock option

n. the right to purchase stock in the future at a price set at the time the option is granted (by sale or as compensation by the corporation). To actually obtain the shares of stock the owner of the option must "exercise" the option by paying the agreed upon price and requesting issuance of the shares. (See: stock, share, option)

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Thus, if a stock option agreement states that the options are nontransferable, a domestic relations order requiring the options to be transferred nonetheless will generally be unenforceable.

Ruling expands Sec. 1041 exemptions from assignment-of-income doctrine

Only a little more than a year ago it seemed that stock options were the quick path to riches.

Sunk by options

Stock options are taxable for Dutch wage, social security, and personal income tax purposes when the employee can exercise the stock option for the first time.

Equity-based compensation plans for multinationals: compensation in a worldwide environment

Even so, Keitel says, Black-Scholes was designed for derivatives that are short-dated, transferable and hedgeable--three adjectives that do not apply to employee stock option grants.

Expensing stock options: the rule is final; Or is it? Most companies following new accounting rules since June 15 have begun to expense stock options. But others--including private and smaller public companies--insist the struggle to reject or modify the accounting is not over

71-52, the IRS determined that an employer did not make a payment of wages for purposes of assessing employment or income tax withholding at the time of the exercise of the qualified stock options under former Sec.

Application of employment taxes to statutory stock options

Implicitly, the IRS also does not regard stock options as "property" subject to nonrecognition under Sec.

How to Unmarry a Millionaire

44 became effective July 1, 2000, and, with some exceptions, will apply prospectively to new stock option awards, exchanges and modifications and changes in status that occur on or after that date.

FASB offers more guidance on stock options

Unlike other products that only focus on a single aspect of stock plan administration, such as tracking numbers for a stock option plan, Two Step's Equity Focus also brings together all of the critical corporate governance information and legal documents that support stock option administration - helping companies ensure proper records management and easier compliance with new regulations.

Two Step Software Introduces Equity Focus - The First Fully-Integrated Stock Plan Administration System

For growing companies, particularly those in the high-tech sector, stock options present a way to offer workers an equity stake early in the company's history, allowing them to benefit from the company's growth and potential for stock appreciation.

'Opting' for pay alternatives: as the debate continues over stock options, there is a pronounced shift toward more rational, results-based pay systems. This is particularly true at the most senior levels

Taxation of nonqualified stock options (NQSOs) is governed by Sec.

Thus, granting options under nonemployer stock option plans generally results in a charge to the company's earnings.

Compensating employees with nonemployer stock options

In July 2006, the Company announced that the Audit Committee of its Board of Directors had self-initiated an internal review of the Company's stock option grant practices.