In today’s competitive landscape, companies constantly strive to attract and keep top talent. While salary packages and traditional benefits remain important, organizations understand the power of equity-based compensation, which can align employee interests with long-term company success. One of these compensation types is the non-qualified stock option (NSO). These options grant an employee the right to purchase company shares at a predetermined price.
In the video below, I discuss the basics of NSOs and their tax implications, and share my views on questions like:
- What is the difference between my grant, vest, and exercise date(s)?
- What are the tax implications of exercising a nonqualified stock option?
- When will I be taxed on my nonqualified stock options?
- How does a nonqualified stock option differ from an incentive stock option?
- How can I pay for the shares I am exercising?
Watch the video below to learn more:
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