Learn About Equity Compensation
Free educational articles to help you understand RSUs, stock options, ESPP, and more. From basics to advanced tax strategies.
Popular Articles
What Are RSUs? A Complete Guide to Restricted Stock Units
Restricted Stock Units (RSUs) are a type of stock compensation where your company promises to give you shares after you meet certain conditions, usually working there for a set period. Unlike stock options, RSUs always have value as long as the company's stock has value. This guide explains how RSUs work, when you'll owe taxes, and how to make the most of this benefit.
Read articleISO vs NSO: Understanding Stock Option Types
Stock options come in two main types: ISOs and NSOs. The differences affect your taxes, exercise strategy, and ultimately how much money you keep. Learn which type you have and what it means.
Read articleESPP Explained: Your Complete Guide
An ESPP lets you buy company stock at a discount, often with a "lookback" provision that can boost returns even more. Learn how to maximize this often-overlooked benefit.
Read articleBasics
Vesting Cliff Explained: What Happens to Your Stock Before You're Fully Vested
A vesting cliff is a waiting period before any of your stock compensation becomes yours to keep. Think of it as a probationary period for your equity - nothing vests until you hit a specific date, then a chunk becomes yours all at once. This guide explains how cliffs work, what happens if you leave early, and how to plan around them.
Read articleUnderstanding Your Offer Letter Equity: A Complete Guide to Stock Compensation
Your job offer includes equity compensation, but what does it actually mean? This guide breaks down every line of equity language in offer letters, from stock options to RSUs, helping you understand what you're getting, when you'll get it, and what it could be worth.
Read articleRSU Vesting Explained: When Your Stock Actually Becomes Yours
RSU vesting is the process that transforms your stock grant from a promise into actual shares you own. This guide explains vesting schedules, tax triggers, what happens on vesting day, and the critical decisions you'll need to make, all in plain English with real dollar examples.
Read articleEquity Compensation Basics: A Simple Guide to Understanding Your Stock Benefits
Equity compensation means getting paid partly in company stock instead of just cash. This guide breaks down what equity compensation is, the main types you'll encounter (RSUs, stock options, ESPP), how it affects your total pay, and what you need to know to make smart decisions about your stock benefits.
Read articleHow RSU Refresher Grants Work: Your Guide to Understanding Refresh Equity
RSU refresher grants are additional equity awards companies give you after your initial stock package starts running out. They're designed to keep your total compensation steady and retain talented employees. This guide explains when you'll get refreshers, how much to expect, and what to do with them.
Read articleWhat Are RSUs? A Complete Guide to Restricted Stock Units
Restricted Stock Units (RSUs) are a type of stock compensation where your company promises to give you shares after you meet certain conditions, usually working there for a set period. Unlike stock options, RSUs always have value as long as the company's stock has value. This guide explains how RSUs work, when you'll owe taxes, and how to make the most of this benefit.
Read articleDouble-Trigger RSUs at Pre-IPO Companies: What You Need to Know Before Your Company Goes Public
Double-trigger RSUs require two conditions before you receive actual shares: time-based vesting and a liquidity event like an IPO. This structure helps pre-IPO companies avoid creating tax bills for employees when shares can't be sold, but it also means your equity isn't truly yours until both triggers happen.
Read articleTax
How to Donate Appreciated Stock: A Simple Guide to Maximizing Your Charitable Impact
When you donate stock that has grown in value, you can avoid capital gains taxes and get a bigger tax deduction than if you sold the stock and donated cash. This guide explains how it works, who benefits most, and exactly how to do it.
Read articleAMT Credits from ISOs: How to Get Your Prepaid Tax Money Back
When you exercise ISOs, you often pay AMT - a prepayment of taxes that creates an AMT credit. This guide explains how AMT credits work, how to claim them back in future years, and strategies to recover your prepaid taxes faster.
Read article83(b) Election Step-by-Step Filing Guide: How to File in 30 Days
Filing an 83(b) election within 30 days of receiving restricted stock can save you thousands in taxes, but the process is confusing and the deadline is strict. This guide walks you through every step, from filling out the form to getting proof of delivery, with real examples and answers to common questions.
Read articleYear-End Tax Planning for Equity Compensation: Your Complete Guide
Year-end is when most equity compensation surprises happen - from RSU vesting you forgot about to ISO exercises that trigger unexpected AMT bills. This guide walks you through exactly what to review, when to act, and how to avoid the most common (and expensive) mistakes before the calendar flips.
Read articleStock Option Exercise Taxes: A Simple Guide to What You'll Owe
Exercising stock options triggers different taxes depending on whether you have ISOs or NSOs, and what you do with the shares afterward. This guide breaks down exactly what you'll owe, when you'll owe it, and how to avoid surprise tax bills with real-world examples and simple explanations.
Read articleRSU Tax Strategies: How to Keep More of Your Stock Compensation
RSUs create tax bills that catch many employees off guard. This guide walks you through exactly how RSUs are taxed and shows you practical strategies to reduce what you owe, from adjusting withholding to timing your sales strategically.
Read articleThe ISO AMT Trap: How Exercising Stock Options Can Cost You Thousands in Unexpected Taxes
The ISO AMT trap catches thousands of employees off guard every year. When you exercise incentive stock options, you might owe Alternative Minimum Tax on paper gains you haven't actually received - sometimes tens or hundreds of thousands of dollars. This guide explains exactly how the trap works and how to avoid it.
Read articleNSO Tax Treatment: When You Pay Taxes and How Much You'll Owe
Non-qualified stock options (NSOs) create taxes at two different times: when you exercise and when you sell. Understanding exactly when you owe taxes and how much you'll pay helps you make smarter decisions about your equity compensation and avoid surprise tax bills.
Read articleRSU Cost Basis Explained: How to Avoid Paying Taxes Twice on Your Stock
RSU cost basis is the value of your shares when they vest, which becomes your starting point for calculating taxes when you sell. Understanding cost basis helps you avoid paying taxes twice on the same income and make smarter decisions about when to sell your vested shares.
Read articleHow RSUs Are Taxed
RSUs are taxed as ordinary income when they vest, but there's more to the story. Learn about withholding, the tax gap, and strategies to manage your RSU tax bill.
Read articleThe 83(b) Election Explained
An 83(b) election can save significant taxes on stock options and restricted stock—but only if filed correctly within 30 days. Learn when it makes sense and how to do it.
Read articleStock Options
Early Exercising Stock Options: A Complete Guide to Buying Before Vesting
Early exercising means buying your stock option shares before they vest, which can unlock significant tax advantages. This guide explains how it works, the benefits and risks, and helps you decide if it's right for your situation.
Read articleWhat Are Stock Options? A Simple Guide for Employees
Stock options give you the right to buy your company's shares at a fixed price, potentially letting you profit if the stock price goes up. This guide explains how they work, when you can use them, and what they could be worth to you in real dollars.
Read articleCashless Exercise Explained: How to Exercise Stock Options Without Paying Cash Upfront
A cashless exercise lets you exercise stock options without paying cash upfront by simultaneously selling some shares to cover costs. This guide explains how it works, compares it to cash exercise, covers tax implications, and helps you decide if it's the right choice for your situation.
Read articleStock Option Expiration Deadlines: When Your Options Expire and What to Do
Employee stock options don't last forever. They have expiration deadlines that determine when you must exercise them or lose them entirely. This guide explains the different types of expiration deadlines, what happens when options expire, and how to make smart decisions before time runs out.
Read articleISO vs NSO: Understanding Stock Option Types
Stock options come in two main types: ISOs and NSOs. The differences affect your taxes, exercise strategy, and ultimately how much money you keep. Learn which type you have and what it means.
Read articleESPP
ESPP Qualifying vs Disqualifying Dispositions: A Simple Guide to Tax Treatment
When you sell ESPP shares, the IRS treats the sale differently based on how long you held them. This guide explains qualifying vs disqualifying dispositions in plain English, shows you exactly how each affects your taxes with real dollar examples, and helps you decide which approach makes sense for your situation.
Read articleHow Much Should You Contribute to Your ESPP? A Complete Guide
Your ESPP offers guaranteed discounts on company stock, but figuring out how much to contribute requires looking at your whole financial picture. This guide walks you through a simple decision framework with real dollar examples so you can choose the right contribution amount for your situation.
Read articleESPP Lookback Provision: How It Boosts Your Discount (With Examples)
An ESPP lookback provision lets you buy company stock at a discount based on the lower price from either the start or end of the purchase period. This feature can significantly boost your gains, especially when your stock price rises. We'll show you exactly how it works with real dollar examples.
Read articleHow ESPP Works: Your Complete Guide to Employee Stock Purchase Plans
An Employee Stock Purchase Plan (ESPP) lets you buy your company's stock at a discount, usually 10-15% off. This guide explains how ESPP works from enrollment through selling shares, including the tax rules that determine how much money you keep. You'll learn the exact steps, see real dollar examples, and discover strategies competitors don't share.
Read articleESPP Tax Rules: A Simple Guide to What You'll Owe (With Examples)
ESPP taxes confuse even smart employees because the rules change based on how long you hold your shares. This guide walks you through the two types of sales (qualifying vs. disqualifying), shows you exactly what you'll owe with real examples, and helps you avoid the most common costly mistakes.
Read articleESPP Explained: Your Complete Guide
An ESPP lets you buy company stock at a discount, often with a "lookback" provision that can boost returns even more. Learn how to maximize this often-overlooked benefit.
Read articleStrategy
Managing RSU Concentration Risk: How to Protect Your Wealth When Your Company Stock Takes Over Your Portfolio
When your RSUs grow to represent a large chunk of your wealth, you're exposed to concentration risk - the danger of having too many eggs in one basket. This guide teaches you how to recognize when you have too much company stock, why it's risky, and practical strategies to diversify without triggering unnecessary taxes or missing out on future growth.
Read articleShould You Sell or Hold Your RSUs? A Clear Guide for Employees
Deciding whether to sell or hold your RSUs is one of the most common questions employees face. This guide walks you through the key factors, tax implications, and practical decision frameworks to help you make the right choice for your financial situation.
Read article10b5-1 Plans Explained
A 10b5-1 plan lets you set up automatic stock sales in advance, protecting you from insider trading accusations. Learn how they work and whether you need one.
Read articleHave questions about your equity compensation?