Employee-stock-option

I believe the title of this book should be "The Complete Guide to Exit Event Stock Options". The author makes his preference for Exit Event stock options clear early on, and throughout the book focuses his attention in that direction. For those of you who don't know, exit event options are stock options that only vest when a company is sold or completes it's IPO. This is a reasonable approach for companies that are likely to seen an exit event in 2-3 years, but not for a company just starting out.

This book masquerades as a comprehensive guide to developing a stock option plan. In truth, it is a very basic overview of some of the topics surrounding stock option plans. When it attempts to walk through how one would actually go about creating a plan, it uses a hypothetical company and an executive named "Charlie". Sadly, whenever Charlie comes to difficult questions, no answer is given. For example, when discussing the question of valuing stock in a private company, the author's answer is to hire an outside consultant....Gee thanks! Beyond the single basic example give, no discussion of how or why certain decisions are to be made and rationalized. Another great example of this is in determining the number of shares to grant to employees and management. The answer given in the case study is that Charlie had "no process to determine these numbers"....wow, really insightful advice.....No plan at all, so when the executives ask you how you came up with the grant allocations, you can just tell them that you winged it, just like Charlie.

As you can tell, the authors couldnt even tackle simple issues like how many shares to grant, or the appropriate strike price,
and this is not even to mention REAL issues like compensating employees whose options are underwater. I guess Charlie didn't have this problem. I am totally embarassed to have bought this book, save your money and search the web for real-world advice.

This book is good in that it covers all the basic mechanics of stock options -- Incentive and Non-Qualified, and ESPP plans. However, this basic information can easily be found on the web or from your employer.

What is sadly lacking from this book is advice on strategy on how to manage options, e.g., ideas on when to exercise and sell. Because of this, the book is quite disappointing to me and not very useful.

This book covers a wide variety of topics behind the complexities of equity compensation. As more and more of the working US population start to receive options from their enlightened employers the more valuable a book like this becomes.

If you have had zero or minimal exposure to stock options and the tax strategies and implications that go along with them - then get this book. However, be warned that although it will give you a good overview, and drills down in some areas - it is NO substitute for speaking with a tax professional. If you have never even heard of the Alternative Minimum Tax (AMT) then you will get a good grounding in the subject and know just enough to be both dangerous , but ask smart questions too.

If I had any criticism of the book it is that many of the chapters are very short and terse, and just as Kaye Thomas starts to bring up interesting points, he stops. Also, all of the examples are wordy (suppose you have 2000 options priced at $20, the stock trades at $27.50, but ...) . Some graphics and a few tables would have made many of the examples much clearer.

Bottom Line - unless you are a CPA or a tax guru, you will get enough out of this book to justify the purchase price. Its probably tax deductible too.

An excellent resource for anyone seeking to understand and be involved in planning strategies to maximize the after-tax value of your stock compensation. Covers restricted stock grants, options (ISOs & NQSOs), employee stock purchase programs (ESPP). Various areas of tax planning are covered in detail: strategies to minimize AMT, effects of early exercise thru 83b election, gifting or donating options/stock, etc.

The author describes topics in a matter that is both thorough and easy to read. The book is organized into sections devoted to specific topics making it easy to skip or skim sections that may not pertain to your particular situation (e.g. there are separate sections on NQSOs and ISOs). Additionally, the author makes good use of examples throughout the book to illustrate complex rules. This latest edition (Apr 2002) includes updated information regarding changes to tax laws as well as explanations of pitfalls that many optionees have encountered recently (e.g. ISO "wash" sales).

This book is a must have to anyone who receives a portion of their compensation in the form of equity, whether it be stock grants, options, ESPP, or any combination of these. The book is both an informative read as well as a handy resource to keep on your bookshelf. After reading this book, most people will have all or nearly all the tools & info they need to develop their own strategies for managing their stock should they so desire. For those seeking professional advice, this book serves as a great overview so that you can understand the process and ask all the right questions. I only wish I had found this book sooner :)

I have always been suspicious of books that seem to spring from the author's need to settle a grudge against a person or organization. This book reminds me why. Its somewhat shrill and patently one-sided arguments do not do justice to the subject at hand. While I'm sure that there are kernels of truth in this account, I believe that the topic would be best served by a more objective approach.

Wow! I was shocked. This book lays bare the terrible things that happened through greed and corruption. I guess I am just naive, but I cannot believe people have gotten away with these things. We need better checks and balances throughout businesses.

This story broke my heart. My family has served at Weirton Steel for over three generations from the ranks of the hourly to the in-house engineering staff, to the management team. The account of Phil Smith has been known for a while, but this is the first time I have seen it in print. Hopefully, business students will take these events to heart to prevent a future tragedy such as this.

This book was great! A headhunter caught me off gaurd with a great opportunity, but I had to make a decision faster than I was comfortable with. I got myself smart in about 2 days, and was able to negotiate a much better compensation package. I'd recommend it to anyone in a negotiation-situation.

Stock options have always been a big mystery to me. This book helped me understand what employers are talking about with stock options. I found tons of "insider" tips and real-life examples that I will put to use right away. In particular, I found the "secrets" of negotiating for stock options-- especially the tricks companies use to reduce stock options grants--to be especially eye-opening. I also learned how to think of myself as an investor and not just an employee--something I had never done before.

I've been able to adjust my own opportunites to negotiate for options. In addition, I found the book fun to read. The writing is fresh, clear, and the concepts easy to understand, even for a novice like me. I also found the glossary of terms and Internet resources to be very helpful tools. I highly recommend this book for job seekers and those who really want to know how to negotiate for all they're worth.