Can ISOs be offered to employees before they start work?
October 16, 2000
Subject: Can ISO be offered to employees on their acceptance date of a job offer?
Date: Thu, 28 Sep 2000
Can ISO be offered to emplyees on thier acceptance date of a job offer or the company has to wait till the actual start date of the employee? If the ISO can not be granted to employees before thier starting date, can they be granted non-qualifield stock options before they actually go on the pay roll.
I will appriciate your comments on the subject.
In order to qualify as an ISO, an option must be granted to an employee. Therefore, the option can’t be granted before an employee’s starting date.
Non-qualified options may be granted to non-employees, so they may be granted before the hiring date.