Getting Started In Employee Stock Options

by John Olagues; John F. Summa

• ISBN13: 9780470570791
• ISBN10: 0470570792
• Format: eBook
• Copyright: 2010-01-01
• Publisher: Wiley

Summary

An A to Z guide for understanding employee stock options (ESOs).In Getting Started In Employee Stock Options authors John Olagues and John Summa provide a full understanding of ESOs and demonstrate how to make the most of them. Page by page this author team, a highly experienced options market maker and a professional trader, share essential information that you're probably not hearing anywhere else. This book contains the keys to managing and hedging ESO opportunities in addition to important tax and valuation guidance appropriate for the highest executives to the non-officer managers and the newly arrived employee.Examines essential ESO issues, including tax consequences, risks, and industry pitfalls Written by an experienced pair of stock option experts Enables employees and executives to make more informed decisions regarding their stock options grantsWritten in a straightforward and accessible style, Getting Started In Employee Stock Options will help protect the value of your options, help you avoid costly mistakes, and allow you to take advantage of certain friendly tax rules. Some of the world'¿²s foremost authorities on options have endorsed Getting Started in Employee Stock Options.

Table of Contents

Preface

Introduction

Preliminary Concepts and Definitions

Options Valuation and Basic Concepts

Risks of holding ESOs (Unhedged)

Tax Consequences of ESOs

Straddle Rule and Tax Implications of Hedging ESOs

Management of ESOs and Premature Exercises

Comparison of Premature Exercises with Early Withdrawal from IRA

Non-Hedging Strategic Choices for Managing Your ESOs

Basic Hedging Strategies Overview

Constraints on Hedging: Real and Imagined

Premature Exercise: Pros and Cons

Putting It All Together - The 7% Solution

Does Hedging ESOs Undermine Alignment of Interests?

Why Do Companies Want You to Exercise Prematurely?

ESO Hedging Case Studies - Google, Yahoo!, and Apple

ESO Valuation Methods

Comparing Restricted Stock with Employee Stock Options

Google Semi-Transferable Options

New World Options Plan

Understanding Executive Abuses I

Understanding Executive Abuses II

Understanding Executive Abuses III

ESO Glossary

IRA Tax Rules for Options

Did the SEC Encourage Back-Dating and Spring Loading?

Hedging under 1.1221-2, Straddle Rule 1092 and other Tax Implications of Hedging ESOs

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