What Issues Should I Consider Regarding My Incentive Stock Options?

Checklists
Written By Echo45 Advisors
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Incentive Stock Options (ISOs) are a form of equity compensation, offering employees a share in the potential appreciation of a company’s value, with preferential tax treatment. If you have been (or will be) granted ISOs by your company, deciding whether and when to exercise ISOs and sell shares can be difficult and requires cash flow analysis, complex tax planning, and a long-term strategy. 

This checklist helps guide you through these topics: 

  • Issues to consider at grant 

  • Implications of exercise, including early exercise and post-vesting 

  • Tax considerations and the IRC §83(b) election 

  • Share ownership and sale strategies 

  • Concentration and other risk 

Echo45 Advisors http://www.echo45advisors.com
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