SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?


To: Tom Aellis who wrote (9710)11/26/1997 7:46:00 PM
From: hpeace  Read Replies (2) | Respond to of 97611
 
tom, almost all stk options , you have to pay tax when you exercise
even if you do not sell it. They also have an option price and you pay the tax when you give them the option price amt.
So, when you exercise you end up with the option price and 25% less for the stk.
It's the other way around..most have to sell the stk to pay the tax.
somebody has 10,000 shares and it's worth 100 a share.
And, there option price is 25 a share.
that's 750,000 profit. then you have to give them the tax right then.. that's anotherb 188k. So they end up with 562k.



To: Tom Aellis who wrote (9710)11/26/1997 11:29:00 PM
From: Meathead  Read Replies (1) | Respond to of 97611
 
Tom, what are the specifics behind turning employee
stock options into common stock without paying income
tax? Is this a common/standard practice or company
specific?

MEATHEAD