Archives For Equity

I often have a discussion that goes like this:

New employee:  “I want Founder Stock”

Me:  “I see, you want to buy Common Stock”

New employee:  “No, I want Founder Stock, just like the founders received.”

Me:  “There is no such thing as Founder Stock, you are talking about Common Stock.”

New employee: “I’m confused.”

Just to clear up the confusion, legally speaking, there is no such thing that is commonly known as “Founder Stock.”   Continue Reading…

This post is a reminder of certain year-end reporting requirements imposed under Section 6039 of the Internal Revenue Code of 1986, as amended, with respect to incentive stock option exercises and transfers of stock acquired under employee stock purchase plans occurring during 2011.

For incentive stock option exercises and transfers of stock acquired under employee stock purchase plans in 2011, the employer must furnish employee information statements no later than January 31, 2012 and must file information returns with the IRS no later than February 28, 2012 (or March 31, 2012 if filing electronically). Continue Reading…

I recently had a detailed discussion with a client about common terms for option grants for advisors. Advisors are typically business or technical people that lend their time and expertise to a company in exchange for equity. This client asked me for the most typical terms for options, so I thought I’d share a couple of thoughts here.
Continue Reading…