Nonqualified Stock Option

(redirected from Nonqualified stock options)
Also found in: Wikipedia.

Nonqualified Stock Option

Any employee stock option that does not meet with IRS requirements for preferential tax treatment.
References in periodicals archive ?
For example, what are the advantages of a performance-unit plan coupled with nonqualified stock options over a nonmarket, book value and market value tandem stock option?
The advice memorandum considers the following three deduction items: (1) The target's nonqualified stock options and stock appreciation rights (SARs) vest on the date of a change in control; (2) the target's financial advisory and investment banking fees incurred in connection with the acquisition become fixed and determinable on the date of a change in status; and (3) the target's debt is retired at a premium after closing on the acquisition date.
The current year is also a good time to exercise vested, in-the-money, nonqualified stock options.
There are two types of options awarded: incentive stock options (ISOs) and nonqualified stock options (NQSOs).
For investments (Schedule D), there's an improved Basis-Pro[TM] cost basis calculator, help with mutual fund sales showing capital gains and losses, and guidance for reporting Nonqualified Stock Options (NQSOs), Incentive Stock Options (ISOs), and Employee Stock Purchase Plans (ESPPs).
Meyer, who said he has not invested in Acxiom in the past, will receive nonqualified stock options of 465,000 shares of the company's common stock and 115,000 shares of restricted stock units.
Nonqualified Stock Options: Revenue Ruling 2004-60 explains how nonqualified stock option income is taxed in a divorce.
However, Section 409A does not apply to: (1) incentive stock options; (2) restricted stock and nonqualified stock options with an exercise price that can never be less than fair market value of the underlying stock on the grant date of the nonqualified stock option; (3) employee stock purchase plans qualified under Section 423 of the Code; (4) nondiscounted SARs with respect to stock of private as well as public companies' stock; and (5) puts/calls if the purchase price is at fair market value.
nonqualified stock options with an exercise price not less than the fair market value of the underlying stock on the date of grant;
In contrast to incentive stock options, the income gain from nonqualified stock options is treated for tax purposes as ordinary income to the employee as of the exercise date, and the company can deduct this cost as a labor expense.
Stock options for employees fall into three major categories: Incentive stock options, nonqualified stock options and restricted stock.
Nonqualified stock options are slightly more common (32 percent of respondent companies offer them) than incentive stock options (27 percent), with only 16 percent of respondents offering both types.