Restricted stock option of stock compensation

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The topic is restricted stock option of stock compensation.

Please analyze and discuss the restricted stock according to the 5 facts below.

Restricted stock:

1). at grant date, no tax consequences.

2). at the date restrictions lift, ordinary income to explore equal to value of stock and employer gets deduction.

3). at sale date, LTGG to employee, no consequence to employer.

4). employees like this since they get stock free from employer without paying cash to employer.

5). employees like this since they get non-cash deduction equal to value of stock on the date stock becomes unrestricted but employers dislike since they get no cash from employee.

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Restricted stock option of stock compensation. The restricted stocks have been discussed and analysed as per the facts provided. The restricted stock options have been discussed for situations at grant date, where there is no tax consequences, at the date restrictions lift, ordinary income to explore equal to value of stock and employer gets deduction, etc.

Reference no: EM131468444

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