On the other hand, if you have incentive stock options, there are more possibilities.
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For more information on incentive stock options, consult your HR representative or financial advisor.
Incentive stock options are similar to nonstatutory options in terms of form and structure.
Steve receives 1, 000 non-statutory stock options and 2, 000 incentive stock options from his company.
Incentive stock options also resemble non-statutory options in that they can be exercised in several different ways.
Unlike non-statutory options, the offering period for incentive stock options is always 10 years, after which time the options expire.
Meanwhile, some employees who profited on their incentive stock options are in line to get huge checks from Uncle Sam.
Many workers who exercised incentive stock options now face big tax problems.
These clients have exercised so many incentive stock options that they will owe AMT, which doesn't allow deductions for state and local taxes.
Incentive stock options can provide substantial income to its holders, but the tax rules for their exercise and sale can be very complex in some cases.
This time lawmakers tried to help folks whose financial lives were shattered by the lethal interaction of the 2000 tech-stock crash, incentive stock options and the alternative minimum tax.
There is a base salary, and a far more lucrative financial incentive through bonuses and stock options based on performance.
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Although the use of stock options in management incentive plans can help focus executives on longer-term company growth, careful planning needs to be undertaken prior to implementing so as to reduce the many disadvantages that can occur.
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Other companies, particularly technology firms such as Microsoft and Intel, make heavy use of stock options as an employee incentive.
In other words, stock options have created a huge incentive for firms' managers to borrow in order to buy back equity which is not at all the same as looking after shareholders' long-term interests.
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Incentive compatibility can be achieved mainly not by stock options but by outright grants of equity to managers as part of their compensation, with the restriction that such positions be held for periods that at least exceed the existing holding horizons of controlling shareholders.
Stock options might not actually serve as an incentive.
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Stock options and quarterly cash bonuses give EMC executives and salespeople plenty of incentive to hit their targets.
If the incentive effects of performance-related pay for ordinary folk are unproven, the effect of stock options is even harder to demonstrate.
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