1 Your Option Term and Vesting Grant 1st3rd4th2nd6th7th9th10th8th 1/4 vests each year Exercise...
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Transcript of 1 Your Option Term and Vesting Grant 1st3rd4th2nd6th7th9th10th8th 1/4 vests each year Exercise...
1
Your Option Term and Vesting
Grant 1st 3rd 4th2nd
6th 7th 9th 10th8th
1/4 vests each year
Exercise anytime after vesting, until end of term
5th
25% 50% 75% 100%
2
How Your Stock Option Benefits You
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
Stock Price
Option grantreceived
Exercise 50% of options
Exercise 50% of options
1/3
Veste
d
2/3
Veste
d
100%
Ves
ted
3
How the Stock Option Pays Benefits
$45.00: market value
at sale
$13.00: exercise
pricePay nothing
Gain another $20 per share
See intranet for tax
information in your country
$25.00:market value at exercisePay $13.00, gain
$12 per share
4
When Option Gains are Taxed
The “basis”
$13.00 exercise price
“Realized gain” $20 per share $25.00:
market value at exercise
The new basis, if unrealized gain is taxed
“Unrealized gain” $12 per share
$45.00:market value
at sale