View Full Version : incentive stock options - vesting


freesia39
4-13-2005, 2:58 AM
my dad says one thing, my bf says the other, right now i'm going to believe my dad.

someone explain vesting to me. i'm currently 25% vested in my incentive stock option at work. the way my dad explained it, i can currently exercise up to 25% of the max shares i'm allotted. once i hit two years, i can exercise the next 25%, etc. the vesting period is 4 years, and my anniversary date is the date of when i started.

the way my bf explained it was that i could exercise all of it now but something to do with the purchase price... he said it makes sense to him but it makes no sense to me. what i've been looking up online seems to support my dad, and i tend to believe him since they went through this with my mom's former employer.

a lot of the stuff i've also been reading has been about the tax implications, i.e. how long i should hold them before this tax applies or that applies, but the vesting part is the one that still is slightly confuzzling.

i-bystander
4-13-2005, 10:16 AM
I believe you're only entitled to exercise 25% at this time. After you've been there for four years - when you're fully vested - then you can exercise the whole amount. I agree with Dad. :)

freesia39
4-14-2005, 8:19 PM
my dad was right. bwhahah. hehe my bf was wrong. he's gonna hear about this for awhile.

i-bystander
4-15-2005, 10:12 AM
LOL - go ahead and bag on the bf all you want. :D

jamesave
4-17-2005, 2:07 AM
ditto.

your dad is right. I know It's kinda late response.

be warned tho that in the future companies are not giving stock options anymore. If they give, it will given on limited basis only.