| For companies: |
 | Stock options can be used as a tremendous motivating reward without the requirement of major cash expenditures. |
| For recipients: |
| Stock options provide the recipients the opportunity to share in the growth of their employers/customers. |
| However, decisions in holding, exercising, and sale of stock options often have significant financial impacts. Listed in the following paragraphs are some of the important factors that a stock option holder needs to consider: |
| Holding/ownership of stock options: |
| How long to hold stock options before excising them. |
| Whether it makes sense to transfer or gift stock options to another person or trust. |
| Exercising stock options: |
| Whether it makes sense to exercise stock options |
| When to exercise stock options |
| Sale of stock acquired: |
| Whether to sell the stock |
| When to sell the stock |
| Section 83(b) election: |
| Whether to make the Section 83(b) election for nonqualified stock options with vesting requirements. |
All of the above decisions merit careful analyses to result in the optimal financial rewards. Our team of professionals can help you do the analyses and projections. We can also work with your firm to offer workshops to a group of your stock option recipients.
