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 ?
Biopharmaceutical company Sage Therapeutics (NasdaqGM:SAGE) said on Friday that its board of directors' compensation committee has awarded non-qualified stock options to purchase an aggregate of 67,000 shares of its common stock to four new employees pursuant to Rule 5635(c)(4) of the NASDAQ Listing Rules.
In conjunction with the new employment, the company has granted Dr Kuta non-qualified stock options to purchase 150,000 ordinary shares in accordance with NASDAQ listing Rule 5635(c)(4).
For non-qualified stock options, most investors usually exercise the option by actually buying the option at the grant price, while immediately selling the stock at the market exercise price.
SBS granted Garcia non-qualified stock options to purchase 75,000 shares of Class A common stock.
The grants, each made July 13, 2015, are an award of 5,000 restricted stock units and an award of non-qualified stock options to purchase up to 80,000 shares of Bsquare common stock.
Interest would mostly apply to non-qualified stock options (NQOs) that were granted before 2005 and fail the exception tests for IRC Sec.
Finally, by using the revenue ruling 2002-22 guidelines, we've been able to help counsel successfully lower the tax bracket on deferred compensation and non-qualified stock options (those still above water) by shifting them from the employee spouse to the nonemployee spouse for exercise in a lower tax bracket," says DeGrazia.
Stock options come in two varieties: incentive stock options (ISOs) and non-qualified stock options (NSOs).
According to Bush, with one exception--the sale of shares sold by the wife of one of the executives--the remaining transactions represented "the routine sale of shares issued upon the exercise of non-qualified stock options.
From an employee's perspective, ISOs offer generally more favorable tax treatment than non-qualified stock options and other equity-based compensation such as restricted stock.
Director compensation includes an annual grant of non-qualified stock options, after an initial grant of 500 options, as proposed in the 1994 proxy.

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