2 continuously monitors the transactions and activities in human resources and stock option
administration systems to ensure compliance in every step involved in the process for granting, executing and accounting for employee stock options
In the exhibits, the option term is only four years--much shorter than the 10-year fife of a typical employee stock option
Just as with public companies, the appraised value of a private company fluctuates over time, and this fluctuation, or volatility, is a key driver of stock option
The next-day deposit rule, TEI said, is nearly impossible for companies to comply with in the context of broker-assisted stock option
Unfortunately, many rank-and-file workers--and more than a few top executives--are blissfully ignorant of the perils of stock option
3) Thus, the grant of a stock option
to an employee is generally treated as a non-event for tax purposes.
Despite the new stock option
requirements and greater scrutiny by auditors, many stock plan administrators are still using patched together spreadsheet solutions that are woefully inadequate to meet today's regulatory challenges.
But the original stock option
grants would be worth $3.
Notice 2001-14 clarifies the issue of the assessment and collection of FICA, FUTA and income tax withholding on statutory stock options
, which include both incentive stock options
(ISOs) and employee stock purchase plans (ESPPs), covered under Secs.
1041 protection and concluded that an employee who transfers stock options
to a spouse as part of a divorce must recognize income immediately at the time of the transfer, even though no options are exercised.
44 not only defines employee but also clarifies the criteria for determining whether a plan qualifies as a noncompensatory plan, the accounting consequences of various modifications to the terms of a previously fixed stock option
or award and the accounting for an exchange of stock compensation awards in a business combination.
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