Stock Option Strategies for Employees and Founders at Startups and Pre-IPO Companies
Strategies for executives, founders, and employees with stock options or restricted stock at startups and pre-IPO companies. Maximize the benefits of stock compensation by planning ahead of an IPO or buyout. Presented by Darrow Wealth Management advisors Kristin McKenna, CFP® and Matt McCreary, CPA, CFP®. Darrow Wealth Management specializes in stock options and equity compensation. If your employer is going public, merging, or getting bought out, work with an advisor experienced with strategic stock option planning, tax implications, and strategies to manage sudden wealth after a liquidity event. https://darrowwealthmanagement.com/st... Key Topic Timing • Introducing the Speakers 0:01 • How Restricted Stock is Taxed 2:41 • How Nonqualified Stock Options (NSOs) are Taxed 5:33 • How Incentive Stock Options (ISOs) are Taxed 7:59 • Alternative Minimum Tax (AMT) and AMT Tax Credits 10:59 • Cash Considerations Before Exercising Stock Options or Buying Restricted Stock 14:56 • When Should You Exercise Stock Options? 18:18 • Early Exercise of Stock Options 20:48 • Incentive Stock Options (ISOs): Early Exercising with 83(b) Example 23:33 • Incentive Stock Options: Early Exercise Without 83(b) Example 25:36 • Nonqualified Stock Options (NSOs) and Restricted Stock: Early Exercise with 83(b) Example 29:40 • Early Exercising: Pros and Cons 31:38 • Liquidity Events and Going Public (IPOs, Mergers, Acquisitions, Direct Listings, SPACs) 34:49 • Taking Profits: Ways to Diversify a Concentrated Holding in Company Stock 40:26 • Mergers and Acquisitions: What can Happen to Equity and Stock Options When a Private Company is Sold 49:36 • Section 1202: Qualified Small Business Stock (QSBS) 51:31 • Pulling it all Together with Wealth and Asset Management for Individuals with Stock Compensation 57:03 The material contained in this video is for general information only and should not be construed as the rendering of personalized investment, legal, accounting or tax advice.
