What are post-vesting options and how do they work?

What are post-vesting options and how do they work?

Post-vesting options are stock options that can be exercised after the vesting period has ended. They allow employees to buy shares at a predetermined price.

What happens if I don't exercise my options after they vest?

If you don't exercise your options after they vest, they may expire after a certain period, typically 10 years from the grant date.

Are there any tax implications when exercising post-vesting options?

Yes, exercising post-vesting options can have tax implications. You may owe taxes on the difference between the exercise price and the fair market value at the time of exercise.

Can I sell my shares immediately after exercising?

Yes, you can sell your shares immediately after exercising your options, but be aware of any trading restrictions or company policies.

What should I consider before exercising my options?

Consider the current stock price, your financial situation, tax implications, and your long-term investment strategy before exercising.