Nonqualified Stock Option


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Nonqualified Stock Option

Any employee stock option that does not meet with IRS requirements for preferential tax treatment.
References in periodicals archive ?
If the option fails the pricing test on the actual grant date, it will be taxed according to the rules for nonqualified stock options.
Table 3 shows total compensation for the private, nonfarm business sector, our estimates of total nonqualified stock option grants and realizations, and the growth rates of all three for 1995 through 1999.
In this case the IRS ruled the husband had to recognize compensation income when he transferred both incentive and nonqualified stock options to his ex-wife.
Traubenberg explained that some TEI members have reported significant late tax deposit penalties being raised in respect of employment and withholding taxes owed on the exercise of nonqualified stock options.
While there are few differences for employees between nonemployer plans and traditional nonqualified stock option plans, there are significant cost, accounting and tax differences for an employer.
On June 9, 2003, the Institute submitted the following comments to the Department of the Treasury and Internal Revenue Service requesting updated guidance on the rules governing employment and withholding tax deposits relating to the exercise of nonqualified stock options.
409A purposes, although the proposed regulations provide a warning for plans that permit such options to be extended or otherwise modified in a manner that produces a nonqualified stock option (NQSO) as the successor.
In private letter ruling 9629028, a corporation with an incentive stock option (ISO) plan and a nonqualified stock option (NQSO) plan was allowed to let its employees make a "constructive exchange" (not physical exchange) of the shares already owned instead of mailing them to the corporation.
NASDAQ:SIMG), a leader in semiconductors and intellectual property for the secure distribution, presentation and storage of high-definition (HD) content, today announced that the Compensation Committee of the Board of Directors of the Company made an inducement grant, effective on January 15, 2010, of a nonqualified stock option exercisable for 1,000,000 shares of the Company's common stock to newly appointed CEO, Camillo Martino.
There is no tax consequence to either the employee or the company at the time of grant of a nonqualified stock option (NQSO), unless the option itself has an ascertainable fair market value (FMV), which usually means that it can be traded.
421 will not apply to a disqualified disposition--treatment is similar to that of a nonqualified stock option (NQSO).
Neither statute, however, specifies separate reporting of the spread between the nonqualified stock option price and its fair value.