Exercising stock options: When is the right time?

Shepherd, Leah Carlson
September 2006
Employee Benefit News;Sep2006, Vol. 20 Issue 11, p24
The article explores the factors that must be considered by U.S. employees before deciding to exercise stock options. According to Paul Allen of Merrill Lynch, employees must consider their risk tolerance, need for cash and overall financial diversity and comfort. Information is presented on the lifespans of stock options. The need for employees to distinguish incentive stock options and non-qualified stock options.


Related Articles

  • Factfile.  // Human Resources (09648380);Jun2009, p54 

    The article discusses the implementation of employee share ownership schemes in Great Britain. The save as you earn scheme (SAYE) allows the employees to save a portion of their payroll for three, five or seven years to purchase shares at an agreed rate or withdraw their money with interest. In...

  • Global Stock Ownership Plans. Mosoff, Susan M. // Corporate Board;Jan/Feb99, Vol. 20 Issue 114, p18 

    Advises executives and directors to use care in designing global employee stock plans to enhance their effectiveness. Use of company stock ownership as a powerful incentive for executives; Expansion of the incentive program to overseas offices; Need to ensure that global stock plans comply with...

  • Union Considerations in Employee Buyouts. Wilkus, Malon // Labor Law Journal;Aug91, Vol. 42 Issue 8, p508 

    This article considers the union-led employee buyout phenomenon in the U.S. An employee stock ownership plan (ESOP) can bring many benefits to the standard leveraged buyout (LBO). First, there is real motivational effects of ownership. Secondly, ESOP transactions offer significant financial...

  • FINANCING THE ACQUISITION OF STOCK BY EMPLOYEES. Halperin, Jack H. // Journal of Corporation Law;Winter81, Vol. 6 Issue 2, p239 

    This article examines certain legal issues with respect to financing employee stock acquisitions directly or indirectly by a corporation pursuant to an employee benefit plan. The recently approved practice of financing the purchase price for nonqualified options by the delivery of shares of...

  • ESOPs, TRASOPs, and PAYSOPs: A guide for he perplexed. Miller, John J. // Management Review;Sep83, Vol. 72 Issue 9, p40 

    Provides information on employee stock ownership plans (ESOP), PAYSOP or a tax credit ESOP, which soon became known as Tax Reduction Act Stock Ownership Plans (TRASOP). Types of ESOP; Basic functions; Key characteristics that companies interested in PAYSOP should consider.

  • Strategic Problems and Tactical Promise: Unions and Employee Ownership. Blasi, Joseph R.; Kruse, Douglas L. // Labor Law Journal;Aug91, Vol. 42 Issue 8, p498 

    This article examines the representation of trade unions in the employee ownership phenomenon in the U.S. Employee ownership is ownership of more than four percent of the total market value of common or preferred stock of a corporation by a group of employees, including substantially more...

  • Investing. Freeman, Peter // Money (Australia Edition);Aug2009, Issue 115, p16 

    The article reports on the move of the Australian government to limit the tax benefits generated by employee share schemes. It states that the schemes offer shares to employees at a discount and the tax payable on this discount often could be delayed until the shares were sold. According to the...

  • EMPLOYEE OWNERSHIP PLANS ON THE RISE.  // Management Review;Oct86, Vol. 75 Issue 10, p8 

    Reports on the rapid growth of employee ownership plans in 1985. Number of companies that adopted employee stock ownership plans (ESOP); Total number of employees covered by the ESOP at the end of 1985, according to the National Center for Employee Ownership Organization in Arlington, Virginia;...

  • UITF 13 has left some important questions about ESOP trusts unanswered. Willott, Bob // Accountancy;Nov95, Vol. 116 Issue 1227, p103 

    Comments on the need to address issues about employee stock option plans (ESOP) trusts. Report issued by the British Accounting Standards Board's Urgent Issues Task Force on the proliferation of ESOP trusts; Clarification on the issue of how to define distributable profits.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics