Show:
Stock Option Plans
Stock Appreciation Rights
RSA, RSU & PA
Local Opportunity
Employee Stock Purchase Plan
100
What is a SOP?
A SOP is a contract right granted to purchase a certain number of shares of stock within a certain time at a certain price. They can be offered as NSO or an ISO
100
What is a Stock Appreciations Right?
It is a contract that grants an individual the right to receive an amount of appreciation on a certain amount of shares without owning the stock.
100
What is a RSU?
They are shares of a company stock that are usually given to the employee at no cost and become available after a set period of time.
100
Within 25million what is the total opportunity of money in motion for Johnson City
$135.8 million
100
What is a ESPP?
Allows participants to make on going stock purchases, often at a discount using payroll deductions. They Can be qualified or non qualified
200
What is the tax treatment of a NSO.
The NSO is not tax favorable. The difference between the grant price and the stock price at exercise are taxed at ordinary income regardless if the shares are held or sold.
200
Is the vesting date a taxable event?
NO, it is only the date the employee COULD exercise the SAR but they don't have to.
200
How could the RSU be forfeited?
If the employee leaves the company PRIOR to shares vesting
200
In the Johnson City area what is the Largest opportunity with a single corporation (besides Eastman)
Pfizer Inc : $2.5 million Eastman: 119 million
200
What is a non qualified ESPP?
The plan does not offer a discount or if a discount is offered it is taxed at the time the shares are PURCHASED
300
What is the tax treatment of a ISO?
The ISO or incentive stock option, has a favorable tax treatment if shares have been held for a year since exercise and 2 years from the grant date.
300
What is a SAR's blackout period?
The period of time that employees are restricted from trading company stock. Usually it is in place when non-public information is available to employees for the purpose of preventing insider trading.
300
How is are RSA and a RSU different?
RSU are not eligible for dividends
300
When we look at money in motion what does that mean?
MIM represents the $ value of all flows out of the SPS record keeping platform as a result of a plan transaction. Plan transactions would include option exercises, restricted stock vesting, employee share purchases (through ESPP) and cash deposits as a result of cash plan vesting events.
300
What is a qualified ESPP?
It is tax qualified under section 423. It general includes a discount when the stock is purchased and employees are taxed on the discount when the shares are SOLD
400
What is the Grant Date and What is the Vesting Period?
The Grant date is the day the employee stock option is approved by the board of directors and awarded. The vesting period is the amount of time the options must be held before they are exercisable.
400
If the client has 100 Rights/ Shares at 5 per share and the stock is current trading at 10 what is the value of the SAR?
$500.00
400
What is a PA and how does it differ from RSU & RSA
A Performance Award is granted with the expectation of a specific performance target. They do not offer a 83(b) election option.
400
What is the most common plan that our office will see? (Besides Eastman)
Walgreens with over 82 plan participants in our area. Eastman has 298
400
what is the Offering period and how does it work?
It is the time where the payroll deductions are accumulated, the shares are purchased on the last day of the offering period
500
If a stock option is under water or out of the money what does that mean?
When the current price is less than grant price rendering the option worthless.
500
If the client never exercises the option what would happen?
The rights would expire and no benefit would be paid to the employee.
500
What is a 83(B) election ?
A tax filling made within 30 day of a restricted stock award grant that taxes the value of the grant on the grant date instead of at vesting.
500
Best Answer Wins: What is #1 reason why you are here learning about SPS
Let's hear them.
500
What are the forfeiture rules during an offering period.
Some plans will return the cash contributed others will purchase stock with cash that is currently in the account.