S1E20: Stock Options for Private Companies with Vieje Piauwasdy

Host John Chapman of the John Chapman Show talks with Vieje Piauwasdy about the differences between incentive stock options and non-qualified stock options, grant date, vesting periods, exercising, and the tax consequences for employees of private companies.

Episode Highlights:

Vieje shares his background and the company that he works for, a fintech startup called Secfi.  
What are some of the things that employees come to Vieje for regarding stock options?
What is the difference between ISOs and NSOs?
What would be the ideology to offer their employees 
What are the timeframes for employees for ISOs?
What is the typical timeframe that employees have to exercise stock options?
How do ISO and NSO taxes differ? 
What happens when the spread is much greater than the market value? 
Why is the idea of an early stock exercise something to consider after a vest date? 
If someone has exercised, bought the shares, paid the AMT tax bill, what are the other things for them to think about as far as tax implications? 
Vieje talks about NSOs, when they vest, and exercising them?

3 Key Points:

There is a limit of $100,000 that you can offer as an ISO for American employees. 
When you leave a company, you have 90 days to exercise stock options or lose them completely. 
For the US, you are taxed when you exercise stock options. 

Tweetable Quotes:

“90% of my day is just helping employees with their stock options.” – Vieje Piauwasdy 
“People have an insane amount of stock options where, if you could pay $1 to get something that is worth $20 its a no-brainer. But, if you are looking at 100s of thousands of options, not a lot of people have that liquidity.” – Vieje Piauwasdy
“The vesting date means when you actually own that (stock) option.” – Vieje Piauwasdy

Resources Mentioned:

Vieje Piauwasdy Linkedin
Secfi website
John Chapman Linkedin

See omnystudio.com/listener for privacy information.