When a company is being purchased or going through an initial public offering, executives and employees receiving equity compensation should understand how their shares will be handled before, during, and after the transaction. It is not always what you think, and mistakes can be costly.
There are many challenges facing executives in selling their company stock. Executives serve the needs of their company and its stakeholders. Section 16 reporting executives are often required to hold a particular value of their company stock to show their commitment, but it doesn’t end there.
Section 83 of the IRS tax code governs the timing and amount of compensation income that is taxable to a taxpayer. This section is essential to executives as they have…
