Do buying companies pay employees for unexercised options?

October 10, 2014

Date:   Sun, 03 Jun 2007
From:   Diane

Hi Michael-

I have been reading information on your web site about non- qualified stock options. Does a buying company typically reimburse employees for options not yet exercised, given there is a market value to them?

Thank you!


Date:   05 Jun 2007

Hello Diane,

I have seen many cases where employees are compensated for their options relating to a purchase. I have also seen employee options converted to options for purchasing company stock. If you are working on an acquisition, you should get legal advice about these issues.

Best wishes,

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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