Total Articles: 7
Reminder Alert: Incentive Stock Options and Employee Stock Purchase Plans—IRS Information Statements and Information Returns under Section 6039
This Alert serves as a reminder of certain year-end reporting requirements imposed under Section 6039 of the Internal Revenue Code of 1986, as amended, with respect to incentive stock option exercises and transfers of stock acquired under employee stock purchase plans occurring during 2011.
Incentive or Gift? How Perception of Employee Stock Options Affects Performance
The basic theory of why companies issue stock options to their employees is fairly simple: The more that a firm's stock price increases, the greater the profit from exercising those options, creating what employers hope is a valuable incentive that will motivate employees to focus on making the company more successful and more profitable.
Incentive Stock Options and Employee Stock Purchase Plans—IRS Information Statements and Information Returns under the Section 6039 Final Regulations
This Alert serves as a reminder of certain year-end reporting requirements imposed with respect to incentive stock options and employee stock purchase plans and as a notification of changes in reporting requirements for incentive stock option exercises and transfers of stock acquired under employee stock purchase plans occurring on or after January 1, 2010.
Special Reporting Requirements Regarding Incentive Stock Options and Employee Stock Purchase Plans -- Final Regulations Issued Under Section 6039
Section 6039 of the Internal Revenue Code of 1986, as amended (the "Code"), imposes reporting requirements on corporations with respect to the exercise of incentive stock options and the transfer of stock acquired under employee stock purchase plans.
IRS Issues Final Regulations for Employee Stock Purchase Plans.
An employee stock purchase plan ("ESPP") allows employees of corporations (typically publicly traded companies) to purchase company stock or stock of an affiliate at a discount with the potential for favorable tax treatment under Section 423 of the Internal Revenue Code ("Section 423") if certain conditions are met. Under an ESPP, eligible employees receive options to purchase company stock (usually at a discount) pursuant to an "offering." Employees typically participate in an ESPP by authorizing voluntary payroll deductions during an "offering period."
Employee Stock Forfeiture Provisions -- A Different Breed of Restrictive Covenant (pdf).
This article discusses forfeiture-for-competition provisions in employee stock incentive arrangements. The authors posit that they should not be treated as restraints on trade or subjected to a traditional restrictive covenant analysis.
How Employee Stock Options Can Undermine the Value of Ordinary Shares.
Tallying corporate profits has never been easy, but in the past few years it’s become even harder as the debate continues over how to count employee stock options.
