If you're a corporate executive, your compensation likely includes more than just salary and bonus. Stock options, restricted stock units (RSUs), performance shares, and other forms of equity can make up a significant portion of your overall package—and have long-term financial and tax implications.

 

At Sipio Law P.C., we help executives understand and optimize the equity components of their compensation plans.  Here’s why reviewing your stock option plan with counsel is essential:  

 

Clarity on What You’ve Been Granted

 

Equity compensation can be complex. We’ll help you interpret grant agreements, vesting schedules, performance criteria, and expiration dates so you know exactly what you have—and when you’ll have access to it.  

 

Navigating Key Events: Termination, Acquisition, or IPO

 

The value and timing of your equity can change dramatically based on corporate events. We’ll review how your plan handles scenarios like resignation, termination (for cause or otherwise), company sale, disability, death or public offering—and help you plan accordingly.  

 

Tax Implications and Timing

 

Exercising stock options or receiving shares can trigger significant tax consequences. If desired, we’ll work alongside your financial advisor or accountant to ensure you understand the tax impact of each decision, including whether to make an 83(b) election (to choose to be taxed on the value of the equity at the time it's granted, rather than when it vests) or how to handle alternative minimum tax (AMT) concerns.  

 

Negotiating for Better Terms

 

When negotiating an offer or separation, your equity shouldn’t be an afterthought. We help executives advocate for favorable treatment of vested and unvested equity, extended exercise windows, and accelerated vesting where appropriate.

 

Protecting Your Interests

 

Stock plans often contain complex restrictions, including forfeiture clauses, clawback provisions, and limitations on transfer or sale. We’ll help spot any red flags and keep you informed to protect your hard-earned equity.  

 

At Sipio Law P.C., we provide clear, strategic guidance to executives navigating stock options and equity compensation—whether you're joining a company, negotiating a new role, or planning your exit. Contact us for a consultation.