executive compensation Archives - Milliken, Perkins & Brunelle

What you need to know about restricted stock awards and taxes

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November 7, 2023 Kevin Brunelle executive compensation, NIIT, restricted stock, Section 83 (b)

restricted stock awards

Restricted stock awards are a popular way for companies to offer equity-oriented executive compensation. Some businesses offer them instead of stock option awards. The reason: Options can lose most or all of their value if the price of the underlying stock takes a dive. But with restricted stock, if the stock price goes down, your company can issue you additional restricted shares to make up the difference.

Careful Tax Planning Required for Incentive Stock Options

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March 7, 2019 Kevin Brunelle executive compensation, incentive stock options, ISO

incentive stock options

Incentive stock options (ISOs) are a popular form of compensation for executives and other employees of corporations. They allow you to buy company stock in the future at a fixed price equal to or greater than the stock’s fair market value on the ISO grant date. If the stock appreciates, you can buy shares at a price below what they’re then trading for. But careful tax planning is required because of the complex rules that apply.
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