Employee Stock Options
An A to Z guide for understanding employee stock options (ESOs)
While most of upper and middle management in organizations use advisors to help manage their employee stock options (ESOs), only a small percentage of those below them can afford to do the same.
Chapter 1: Introduction.
Chapter 2: Preliminary Concepts and Definitions.
Chapter 3: Options Valuation and Basic Concepts.
Chapter 4: Risks of holding ESOs (Unhedged).
Chapter 5: Tax Consequences of ESOs.
Chapter 6: Straddle Rule and Tax Implications of Hedging ESOs.
Chapter 7: Management of ESOs and Premature Exercises.
Chapter 8: Comparison of Premature Exercises with Early Withdrawal from IRA.
Chapter 9: Non Hedging Strategic Choices for Managing Your ESOs.
Chapter 10: Basic Hedging Strategies Overview.
Chapter 11: Constraints on Hedging: Real and Imagined.
Chapter 12: Premature Exercise: Pros and Cons.
Chapter 13: Putting It All Together The 7% Solution.
Chapter 14: Does Hedging ESOs Undermine Alignment of Interests?
Chapter 15: Why Do Companies Want You to Exercise Prematurely?
Chapter 16: ESO Hedging Case Studies Google, Yahoo!, and Apple.
Chapter 17: ESO Valuation Methods.
Chapter 18: Comparing Restricted Stock with Employee Stock Options.
Chapter 19: Google Semi Transferable Options.
Chapter 20: New World Options Plan.
Chapter 21: Understanding Executive Abuses I.
Chapter 22: Understanding Executive Abuses II.
Chapter 23: Understanding Executive Abuses III.
Appendix A: ESO Glossary.
Appendix B: IRA Tax Rules for Options.
Appendix C: Did the SEC Encourage Back Dating and Spring Loading?
Appendix D: Hedging under 1.1221 2, Straddle Rule 1092 and other Tax Implications of Hedging ESOs.