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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: AurumRabosa who wrote (68069)	9/22/1999 3:55:00 PM
From: Michael Bakunin	Respond to of 132070

I can't be sure, but those don't look like options-related shares. 'Stock participation plan' sounds more like buying discounted shares in time-honored (ahem) fashion. No? Maybe? -mb

To: AurumRabosa who wrote (68069)	9/22/1999 4:27:00 PM
From: H.Jablomey	Respond to of 132070

If I may butt in here.... How interesting that that would be published in the Exercising Stock Options Workbook, when that has nothing whatsoever to do with ESOPs. The 2-year timespan has to do with shares purchased directly from the employer thru regular payroll deductions. My employer has the same type of plan with the same restrictions. All the options I've ever received and exercised were treated completely differently. Hope this helps.

To: AurumRabosa who wrote (68069)	9/22/1999 4:37:00 PM
From: Exacctnt	Respond to of 132070

Ron, Make sure that you aren't looking at a matching savings investment plan paid in stock. There are a few types of options that could have differing tax consequences. The most common in called a Non-Qualified option and doesn't have any holding requirements after exercising. Another is an Incentive stock option and I don't recall the tax consequence or the specifics. A third option is called an SAR(Stock Appreciation Right) where the holder has the right to either receive only the gain in cash without exercising the SAR, or, to exercise the option and treat it as an underlying Non-Qualified Option. In this case, if he takes cash, I believe it is treated as ordinary income. Other than options, companies also issue restrictive stock to key employees. The purpose is to ensure that key employees such as talented scientists, engineers, programmers etc., don't jump ship and have an incentive to remain with the company. Restrictive stock usually vests at the end of a designated period normally 5 years. There are all sorts of other compensation gimmicks to entice employees to remain with the company. In some cases, the company itself may require the employee to hold the stock for a period of time before selling. Regards