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Subject:   stock options
Date:   Tue, 25 Jan 2005
From:   Anonymous

Mr. Gray,

I received several thousand shares of stock in my employer a little less than two years ago as an incentive to accept my job. The company will soon go public, but I'm thinking about leaving. I don't understand the stock plan, but I'm afraid to ask questions at the HR department because they will probably suspect I am planning to leave. What would you do?

Answer

Date:   Wed, 09 Feb 2005

Hello,

I would tell the HR department that I need to have information about the stock plan in order to prepare for the coming public offering. If you actually have unexercised options for company stock, you might want to exercise them before the company goes public - whether you decide to leave or not. GETTING PROFESSIONAL ADVICE FOR THIS SITUATION IS CRITICALLY IMPORTANT.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.