INCENTIVE STOCK OPTIONS (ISOs)
01.Core Concepts
• Statutory Stock Option • Ties an employee benefit to the stock price of the company and may provide special taxation • May only be granted to employees • The aggregate fair market value of ISO grants that are exercisable in a year must be less than $100,000 per executive. • For ISO special tax treatment, individual must hold stock two years from date of grant, AND one year from date of exercise.