Topic
Stock Options
438 published works
The Benefit of Benefits
IRS Releases Form For Making Section 83(b) Election
By Scott E. Galbreath, J.D., LL.M (Tax)
Under Internal Revenue Code section 83(b), taxpayers who receive property, such as stock, in exchange for services that is subject to forfeiture, or is unvested for a certain period, may…
Law Times News
Ontario Court of Appeal upholds employer’s settlement and bars claim for vested stock units
The settlement's wording was clear, comprehensive, and released all claims: court
Compensation & Benefits Blog
IRS Creates Standardized Form for Section 83(b) Elections
By Jesse T. Foley, Colleen Hart, Nicholas LaSpina, David B. Teigman, Kyle J. Litfin, Amanda H. Nussbaum
Earlier this month, the Internal Revenue Service (“IRS”) released Form 15620, which is an approved IRS form for making Internal Revenue Code (“Code”) Section 83(b) elections. By way of background,…
Benefit Notes
IRS Introduces Official Section 83(b) Election Form
By Mark Wilkins
On November 7, 2024, the IRS introduced Form 15620, a new standardized form for taxpayers opting to make a Section 83(b) election. Previously, taxpayers needed to send a letter to…
MTFN Resources
Navigating the 83(b) Election: Risks and Rewards of Early Taxation
By MTFN
Internal Revenue Code § 83 governs the taxation of property (e.g., stock, restricted stock units, or stock options) transferred in connection with the performance of services. Generally, the property is…
Taft Tax Insights
Did you know that you can reprice underwater employee options without triggering tax to the employee?
By James Duffy
When a company sees its stock value drop, this can result in employees holding options that are “underwater“ or “out of the money“. This can significantly undermine the intended incentive…
Employment Law Worldview
Valuation of Stock Options: Assessing the Risks to Employers When Terminating Employees with Vested Stock Options (US)
A recent California Court of Appeal opinion, Shah v. Skillz Inc., (2024) 101 Cal.App.5th 285, addressed two important questions relating to the valuation of stock options that have been the…
Canadian Labour and Employment Law
Changes to Taxation of Stock Options and Capital Gains – Effective Immediately
By Josephine Chuk, Barbara Klementz
Changes to the capital gains inclusion rate and the employee stock option deduction rate (as proposed in Budget 2024) will apply to stock options exercised and shares sold on or…
China Law Insight
股权激励一站通（二）：持股平台授予模式下，激励对象与用人单位就股权激励构成本约还是预约？
By King & Wood
作者：马捷 (Jay Ma) 李馨 宋滕昊 杨洋 如笔者股权激励系列的第一篇文章（《股权激励一站通——股权激励纠纷属于劳动争议还是民商事争议？》）所述，因股权激励架构模式多样、架构复杂、关联主体众多，股权激励所形成的法律关系具有复合性。就中国境内公司的股权激励而言，实践中常见的模式为：由用人单位/目标公司制定统一的股权激励计划，另行设立公司/合伙企业为持股平台，由企业实控人或实控人控制的公司或合伙企业作为该持股平台的GP/股东，其他激励对象通过受让GP/股东（或其他现有LP/股东）的合伙份额/股权或向持股平台进行增资从而成为持股平台的LP/股东，进而间接持有目标公司的激励股权（“持股平台授予模式”）。在持股平台授予模式中，股权激励文件制定颁布、激励对象的范围框定、考核业绩指标的确定、激励股权的授予和实际持有并非“一步到位”。 阅读更多
Startup GC Business Law Insights
Negotiating Stock Options with Startups
By Paul Swegle
Joining a startup? Get your stock options right! Here's what to know about grant sizes, vesting, cliffs, exercise price, and the ISO v. NSO dichotomy, plus advanced asks around accelerated…