The expectation (or hope) with these indirect stock buybacks is that the stock will move upwards because the shares oustanding goes down (or at least the buybacks offset the dilution from the exercise of options).
Those were about the timing of the exercise of stock options by highly paid executives.
In light of the enormous one-time compensation deduction Facebook received upon the exercise of its options, however, certain Congressional leaders have begun calling for change.
Some clients did a "cashless exercise" of nonqualified options, borrowing from a broker all the funds needed to exercise and to cover the withholding taxes on exercise.
Companies may also choose to restrict the exercise timing of stock options.
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But factor in the frequent use (and exercise) of stock options as compensation, as well as the need to do estate planning or make a down payment on a new home, and the pattern doesn't look so weird.
By law, your company must withhold at least the applicable flat rate of federal income tax on the exercise of your nonqualified stock options.
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The exercise of Zuckerberg's stock options and his subsequent sale of shares in the IPO had been previously disclosed.
In other words, because of the European-style exercise and the mean-reversion of volatility, VIX options will often trade at lower value than what seems appropriate during periods of high volatility (and vice versa in low volatility periods), particularly early on in the term of the option.
Stock options with an exercise price of fair market value or higher on the grant date qualified as cap-exempt performance-based compensation, while service-vested restricted stock did not.
Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.
When you have that many options to exercise, making large sums of money becomes significantly easier.
Because executives typically have to stay with a company for a certain period before they can exercise their options, options buy some boardroom peace of mind.
Waiting to exercise nonqualified stock options (NQSOs) from December of this year to January of next year may let you invest the funds that will be used to pay some of the tax for almost an additional year.
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When employees exercise their share options, the company concerned can do one of two things.
Ordinarily, with nonqualified options, the value of the stock over the exercise price is taxed as salary.
America's largest company by market value announced Wednesday that it will place a holding period of at least one year on stock gained through options exercise.
Exercise, use of stockings, injections, surgery and laser treatments are all options, she says.
Then his broker offered some advice: Cash in those options, but instead of selling some of the shares to cover the exercise price and related taxes, just take out a margin loan.
Most options were plain vanilla, with an exercise price equal to fair market value on the date of grant, ten-year terms and a three- to four-year vesting period.
Often they will exercise the options and sell the stock simultaneously, in which case they are taxed on the gain in the value of the stock as ordinary income.
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