Quote:
Originally Posted by caco54
As part of my compensation I am issued stock options. There are rumors that my company might be bought out by another publicly traded company. Would my options "cash out" or would they transition into the new company options?
|
depends on how it gets negotiated. You should be able to exercise any vested options if you want to participate in the sale, although they may require that you cancel them in exchange for a payout = the in-the-money amount (typically this is done when there's an escrow since the exercise of an option requires the employee to take the escrow amount into income in the year of sale instead of the year of payment). The unvested options can either be accelerated, substituted or cancelled depending on how things shake out.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
