5 Questions To Ask Your Employer About Your Stock Options Plan
Our best advice when deciphering your stock options plan? Go straight to the source! In order to make an informed decision about your options, you need to go into a meeting with your employer armed with the right questions. Here are five of the most important things to ask your employer and why you should be asking them. This worksheet will help you through the process of determining what you have and what that means.
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Question 1:
What is the type, quantity and exercise price of the options I have been offered? There are two types of stock options: non-qualified stock options (NQOs) and incentive stock options (ISOs). The main difference between NQOs and ISOs is your tax treatment when the options are exercised. For more details, please see article “NQO versus ISO.” You also need to know both the quantity of options you will receive and the exercise price (what price do you pay to convert these options to shares).
For the remaining questions, download our worksheet!