Recommend Our Site to Your Friends!

Print This Page

Subject:   Can ISO be offered to employees on their acceptance date of a job offer?
Date:   Thu, 28 Sep 2000
From:   Vipulkumar

Dear Mike,

Question:

Can ISO be offered to emplyees on thier acceptance date of a job offer or the company has to wait till the actual start date of the employee? If the ISO can not be granted to employees before thier starting date, can they be granted non-qualifield stock options before they actually go on the pay roll.

I will appriciate your comments on the subject.

Vipul

Answer

Hello Vipul,

In order to qualify as an ISO, an option must be granted to an employee. Therefore, the option can’t be granted before an employee’s starting date.

Non-qualified options may be granted to non-employees, so they may be granted before the hiring date.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

For more information about non-qualified stock options, request our free report, Non-Qualified Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.