A type of employee stock option which provides tax advantages for the employer that a non-qualified stock option does not, but which is subject to more stringent requirements. In general, an incentive stock option must only be granted to employees, under a specific plan document that states how many options will be given to each employee, within 10 years of receiving shareholder approval and the exercise price must equal or exceed the market price at the time of grant. The option can only be exercised within 10 years of receipt, and there are several rules governing how exercise of the option affects the employer's tax burden.
Related information about statutory stock option:
- Tax Topics - Topic 427 Stock Options
Nov 7, 2012 ... If you are granted a statutory stock option you generally do not include any amount in your gross income when you are granted or exercise the ...
- Statutory Stock Option Definition | Investopedia
Also known as incentive stock options, this type of employee stock option gives participants an additional tax advantage that unqualified or non-statutory stock ...
- What is statutory stock option? definition and meaning
Definition of statutory stock option: A type of employee stock option which provides tax advantages for the employer that a non-qualified stock option does not, ...
- Incentive stock option - Wikipedia, the free encyclopedia
Although ISOs have more favorable tax treatment than non-ISOs (aka non- statutory stock option (NSO) or non-qualified stock option (NQO)), they also require ...
- STOCK OPTIONS - Employment Development Department
The employment tax treatment of a statutory stock option depends, in part, upon ... realized from a statutory stock option is the same as the federal treatment: no ...
- Non-Statutory Stock Options | eHow.com
A non-statutory stock option gives senior employees the opportunity to cash in on gains in the company's stock price without risk and without having to invest ...
- Non-Statutory Stock Option Agreement - deCODE genetics Inc.
NON-STATUTORY STOCK OPTION , Optionee: deCODE genetics, Inc., a Delaware corporation (the "Company"), has granted to you, the optionee named above ...
- Form of Non-Statutory Stock Option Agreement
3. Non-Statutory Stock Option. The Company hereby designates the Option to be a non-statutory stock option, rather than an Incentive Stock Option as defined in ...