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Employee Share Options when leaving post

  • 10-08-2017 7:52am
    #1
    ballyargus
    Registered Users, Registered Users 2 Posts: 1,031 ✭✭✭


    What happens to employee Share Options when leaving a post?


Comments

  • #2
    FishOnABike
    Registered Users, Registered Users 2 Posts: 4,671 ✭✭✭FishOnABike


    ballyargus wrote: »
    What happens to employee Share Options when leaving a post? I was told I didn't have to do anything when given them. However I'm not sure if they have been "exercised" or not (or what that even means) - is there anything I can do to ensure retention during my notice period?

    I'd advise to read up the terms of the company's share options scheme. What happens on leaving the company depends on the particular terms of the scheme in your company.

    Options usually give the opportnity to buy shares at a discount or guaranteed price at some future date (vesting date). If the shares have appreciated in value by the vesting date they can be a handy risk free bonus.

    The shares could be bought at a discount at the vesting date and retained to reduce any capital gains tax liability or bought and sold in 'bed and breakfast' transaction at the vesting date pocketing the profit and paying any capital gains tax due.

    As share options are frequently used as an employee retention mechanism it is possible that any unexercised options could be forefit on leaving the company. You will need to check the scheme details to determine the implications of handing in your notice.


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