What happens to my options if the company is acquired?

February 11, 2004

Subject:   NQSO Question
Date:   Tue, 20 Jan 2004
From:   Bernard

Michael Gray,

My wife owns an NQSO for 7000 shares of a public company that are not yet vested. If that company is acquired by a private company, what happens to the non-vested shares in that NQSO?

Thank you for answering our question



Date:   Mon, 02 Feb 2004

Hello Bernard,

In most cases they will be replaced with equivalent options for shares of the acquiring company. Of course, she won’t be able to sell those shares on the stock market. I suggest that your wife direct the question to the management of her company.

Good luck!
Mike Gray

For more information about non-qualified stock options, request our free report “Executive Tax and Financial Planning For Non-Qualified Stock Options”.

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