Category: Equity Awards

This post explains the wealth-creation benefits of participating in an employee stock purchase plan (ESPP). These plans are an employee benefit available at many companies that have issued publicly traded stock. Executive Summary If a company offers an employee discount, employees pay tax at ordinary income tax rates on the discount amount when shares are […]

If you’re an employee of a private company on the verge of an initial public offering (IPO) or buyout, here are 5 things you need to do now to maximize your wealth potential: Prepare an inventory of your company stock, options, and other equity awards. Include the vesting schedule for each. Early-exercise your stock options, […]

For the lucky few who manage to work at—or start—the right company at the right time, a big wealth creation event—an IPO, a merger, an acquisition, or other liquidity event—is a once in a lifetime happening. (For an even luckier few, lightning may strike twice or three times.) It’s important to realize early on—before the […]