News & Analysis as of

Stock Options Income Taxes

Latham & Watkins LLP

French Tax Authorities’ Guidelines Clarify the New Legal Framework Applicable to Management Package Instruments

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The regime sets new rules regarding the taxation of gains realized on the sale of securities held by employees or executives in the frame of management packages....more

Jackson Walker

Income Tax Changes Warrant Consideration When Awarding Equity Incentives

Jackson Walker on

Tax law is an interrelated web of complex rules, and changes in one rule can impact compensation strategies for management and executives even if the change is to individual income tax calculation rules. Executives should...more

Pillsbury - Propel

Equity Compensation Primer: ISOs v. NSOs

Pillsbury - Propel on

Many early-stage companies give employees, consultants, advisors, board members and other service providers (referred to as “service providers”) an opportunity to own a stake in the company through the grant of compensatory...more

Blank Rome LLP

California Snags Former Resident for Tax Due on Stock Options

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Many employees receive stock options as compensation from their employers. When receiving this type of compensation, the state tax implications may not be at the forefront of the employees’ minds, especially where it may be...more

Goodwin

Deadline Approaching for Reporting 2024 ISO Exercises and ESPP Share Transfers

Goodwin on

The Internal Revenue Code requires corporations to provide information statements to employees (including former employees) and information filings to the IRS regarding exercises of incentive stock options (ISOs) by employees...more

Orrick, Herrington & Sutcliffe LLP

Legal Ninja Snapshot: #ESOP & Flips - U.S. ESOPs for Employees of the German Subsidiary Now Available

Good news! The second chamber (Bundesrat) has now paved the way for the eagerly awaited and much-debated inclusion of a group privilege in sec. 19a of the German Income Tax Act (“EStG”). German start-ups that have done the...more

Lowenstein Sandler LLP

Stock Options and Section 409A: What You Need to Know

Lowenstein Sandler LLP on

On this episode of Just Compensation, Jessica Kriegsfeld speaks with Darren Goodman and Taryn E. Cannataro about stock options and Section 409A of the tax code, a complicated set of rules regulating the taxation of...more

Orrick, Herrington & Sutcliffe LLP

Legal Ninja Snapshot: #ESOP & Flips — U.S. ESOPs May Become Available for the Employees of the German Subsidiary

Much has been written about the unsatisfactory tax situation of German employees when it comes to equity-based employee stock (option) programs ("ESOP"). Historically, employees were taxed at the time of issuance of shares...more

Mayer Brown

Stock Options tem caráter mercantil e não remuneratório, diz STJ

Mayer Brown on

O Superior Tribunal de Justiça (STJ) decidiu que as opções de compra de ações concedidas a administradores e empregados tem caráter mercantil e não remuneratório. Com isso, o Imposto de Renda da Pessoa Física (IRPF) não pode...more

Pillsbury - Propel

Equity Compensation: Navigating 409A Valuations

Pillsbury - Propel on

Private company clients frequently ask us about granting compensatory stock options to their founders, employees and other service providers, including board members, consultants and advisors. Options and other equity awards...more

Foley & Lardner LLP

Unlocking the Power of Equity-Based Incentive Compensation: Basics of Nonqualified Stock Options and Stock-Settled Stock...

Foley & Lardner LLP on

This article is the second in our series on equity-based compensation intended to assist employers with answering a common question: What type of equity compensation award is best for our company and our employees?...more

Orrick, Herrington & Sutcliffe LLP

Zukunftsfinanzierungsgesetz und ESOPs – Wirklich der große Wurf?

Wichtiger Hinweis: Die folgenden (rechtlichen) Ausführungen dienen nur der allgemeinen Information, sind nicht abschließend und stellen keine rechtliche, steuerrechtliche oder sonstige Beratung dar. ...more

Goodwin

What are “Double-Vest” RSUs and Why Are They Making Headlines?

Goodwin on

Double-vest restricted stock unit awards (Double-Vest RSUs) made headlines a few years after the end of the Great Recession when they were awarded by pre-IPO tech giants. Since that time, it has become increasingly common for...more

Orrick, Herrington & Sutcliffe LLP

Annual Reporting Requirements for Incentive Stock Options and Employee Stock Purchase Plans

For (1) any exercise of an incentive stock option (ISO) during 2022 or (2) transfer during 2022 of a share previously purchased pursuant to a tax-qualified employee stock purchase plan (ESPP), the Internal Revenue Code...more

Jones Day

Employee Stock Plans: International Reporting Requirements (UPDATED)

Jones Day on

This White Paper highlights some of the principal annual or quarterly reporting requirements for employee stock plans that multinational companies most commonly encounter when offering these programs to their employees in...more

Sheppard Mullin Richter & Hampton LLP

2022 Year-End – A Few Executive Compensation Income Tax Reminders

With the holidays in full swing and less than one week remaining in 2022, we wanted to pass along a few compensation income tax related stocking stuffer reminders in connection with the year-end for which companies and/or...more

Orrick, Herrington & Sutcliffe LLP

Founder Series: Top Tips to Follow to Incentivise Your Team

Orrick's Founder Series offers monthly top tips for UK startups on key considerations at each stage of their lifecycle, from incorporating a company through to possible exit strategies. The Series is written by members of our...more

Orrick, Herrington & Sutcliffe LLP

UPDATE: Russian Central Bank Clarification Provides Limited Exception to Decree No. 81

On March 18, 2022, the Russian Central Bank clarified that the restrictions imposed under Decree No. 81 (see our earlier alert below) do not apply if a Russian resident acquires shares from a company of an “unfriendly”...more

Orrick, Herrington & Sutcliffe LLP

Practical Approaches to Employee Equity in Russia under Presidential Decrees

The Russian President has issued Decree No. 81 — “due to the unfriendly actions of the US and other countries in violation of international law” — establishing special procedures for any transactions leading to the transfer...more

Morgan Lewis - ML Benefits

Reminder: No Need to Adopt Retirement Plans, ESOPs included, by End of 2021 for Tax Deduction Purposes

Before 2020, the IRS had long taken the position that an employee stock ownership plan (ESOP), and any other retirement plan for that matter, must be adopted no later than the end of the first tax year in which the employer...more

Blank Rome LLP

Ohio High Court Upholds Taxation of a Nonresident’s Income from Stock Options

Blank Rome LLP on

The Supreme Court of Ohio upheld the City of Cleveland’s taxation of a nonresident’s income from stock options even though the income was recognized by the nonresident seven years after the nonresident had ceased working or...more

White & Case LLP

Replacing Pay with Equity to Preserve Cash in a COVID Economy

White & Case LLP on

As pandemic effects linger, companies intent on avoiding layoffs are looking at compensating workers with equity in lieu of cash as part of their pay. In August 2020, the United Kingdom began winding down its Coronavirus...more

Gerald Nowotny - Law Office of Gerald R....

Nowotny on Death and Taxes Episode 6 Surfs Up Dude! High Tech Tax Solutions for High Tech Workers

Episode 6 is about tax planning solutions for the exercise of incentive stock options. ...more

Orrick, Herrington & Sutcliffe LLP

Annual Reporting Requirements for Incentive Stock Options and Employee Stock Purchase Plans (UPDATED)

Requirement to Report - For (1) any exercise of an incentive stock option (ISO) during 2019 or (2) transfer during 2019 of a share previously purchased pursuant to a tax-qualified employee stock purchase plan (ESPP), the...more

Jones Day

International Employee Stock Plans: 2019 Mid-Year Developments

Jones Day on

This White Paper highlights some recent developments in certain countries relating to employee stock plans offered by multinational companies to employees in such jurisdictions. BELGIUM - New Tax Withholding...more

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