A key element of Section 102 ESOP’s is the obligation to use a trustee in order to qualify for certain benefits. You have to appoint a trustee when you set up your plan. You have to notify the ITA of the appointment. You have to submit all option grants to the trustee and shares issued …
As you go through the “Option & Share Plan for Employees” Section of the Due Diligence Handbook and the various articles I’ve written on options you will notice myriad references to tax authorities in general and the ITA (Israeli Tax Authority or Mas Hachnasah) in particular. That’s because, as we discussed here, national tax authorities …
No Soup Tax Benefits for You!—Israeli Tax Advantaged ESOP Program Requirements Read More »
Before we start…. OMGOMGOMG!!!! IT’S MY FIFTIETH POST! I should really use my “what is” illustration for this post, but I decided I deserved a celebratory cupcake, so I’m using that instead. I apologize for any confusion. Okay. Now, to business. Let’s start with a key definition First, you will need some tools in …
This is a short post. Yes, yes, I always say this and I’m generally lying because, let’s face it, I’m a champion talker. But this really is going to be short. Because, between you and me, I’m sick and tired of writing about options and want to be done with this section of the Due …
Here is a short post with a lots of illustrations. Remember when we talked about ESOP’s, how they are established and what topics they cover? No? You didn’t read that post? Okay, so run off, take three minutes (it’s short and simple) and then come back. . . . You are done? Fabulous! Moving right …
First, a bit of vocabulary…. The Cupcakes of the Equity World: An Introduction to Options Terminology (article format) My First Infographic: An Introduction to Option Terminology (Infographic format) What is Vesting? Proxy Moxie! What is an Option Pool? What is Reverse Vesting What are Repurchase Agreements? (in the pipeline) And a few words of explanation…. …
Your Friendly Neighborhood Option & ESOP Cheatsheet Collection Read More »
So, there you are, going about your day, minding your own business. And then your auditors call you and ask you for a rollforward of option activity for 2017. And then your trustee calls you and asks for a schedule of your option grants so that they can reconcile them to their records. And then …
The Ultimate Option Rollforward Template! With A Cheat Sheet! Read More »
One fine day, your lawyer calls you up to remind you “hey, you have to have your annual shareholder meeting and approve your financial statements!” Now, the Board of Directors, (which, as we learned, includes representatives of the major investors), reviewed and approved the statements at their last meeting. As such, instead of making your investors—all …
For fun, let’s start with a wee bit of confusion. “ESOP” can refer to an “Employee Stock Option Plan”, which is a plan which allows employees to receive and exercise options for the purchase of company shares. In the US, however, and as the SEC points out, “ESOP” refers to an “Employee Stock Ownership Plan”, …
For those of you who prefer this in Infographic format, see here. The next part of the Due Diligence Handbook deals with options. This is an interesting area to review, but it is also a big one, and can be a bit technical. Seeing how most of you likely have neither the time nor the …
The Cupcakes of the Equity World: An Introduction to Options Terminology Read More »
