Under the vesting schedule, 25% of each
option holder's options will vest 12 months after the day of grant as long as the
option holder is still employed.
The exercise of a noncompensatory option generally will not cause either the issuing partnership or the
option holder to recognize gain or loss.
May 2012 - Aurium shareholder meeting and Aurium listed
option holder meeting to approve the schemes; Court hearing to approve the schemes
An award of in-the-money stock options may result in taxable income to the
option holder and create an obligation for the company to withhold taxes.
Each
option holder received options for the number of FCTL common shares equal to the number of FCTL common shares the
option holder would have received upon the completion of the arrangement if they had exercised all of their options before the completion of the arrangement.
If a disqualifying disposition occurs, the
option holder has to include compensation income in gross income for the year.
Stock volatility has value to an
option holder because the holder benefits from stock increases without being hurt by stock decreases.
I was disappointed to see that none of the authors of the stock option accounting articles [October 2002 Strategic Finance] took the strong stand that companies should bite the bullet and record stock option compensation cost in the same fashion as the executive who receives the benefit measures its value and as the man on the street also views the value--the excess of the market price over the price the
option holder pays on the day of exercise.
The stock could rise and you'll have to buy back the option at a loss, or else lose your shares to the
option holder.
The most commonly used technique is the exercise of an option with existing stock owned by the
option holder.
In other words, the
option holder retains the right to decide the timing of taxation, thus allowing the opportunity for tax-deferred build-up of value.
123(R) requires is not intended to predict the ultimate value realized by an
option holder, the staff will not object to reasonable fair value estimates made in good faith in accordance with the statement, even if subsequent events indicate other estimates would have been more accurate.
