Whenever I get a chance to exercise stock options I generally sell them immediately on the basis that (a) I don't want to many of my eggs (i.e. job and investments) in one basket (my employer's company) and (b) generally if I was given that amount of cash it would be unlikely that my company's shares would the first that I would run out and buy. Instead I use the money for something immediate or reinvest it elsewhere.Remember that not only the share value, but your job also depend on the success of your company. Best not to keep all your eggs in one basket.
Isn't this only with Revenue approved schemes and many share option/purchase schemes are not Revenue approved so don't qualify for such tax treatment?If so then I would wait the 3 years needed to avail of reduced tax liability - i.e. only pay Cap gains on the amount instead of Income tax.
I've been a member of a few US multinational and indigenous Irish company ESOP/ESPP schemes and none was Revenue approved so the deferred/preferential tax treatment did not apply. It was always income tax on any difference between discount and exercise price and CGT on any capital gain thereafter with no deferral of the liabilities possible. My understanding is that very few ESOP/ESPP schemes are actually Revenue approved. Not sure about SAYE schemes though or how these differ.Not sure but I imagine a large US muliti would be using the ESOP program to allow employees to benefit from tax savings and make them owners rather than offering options- maybe OP can specify.
It was always income tax on any difference between discount and exercise price and CGT on any capital gain thereafter with no deferral of the liabilities possible. My understanding is that very few ESOP/ESPP schemes are actually Revenue approved. Not sure about SAYE schemes though or how these differ.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?