June 2, 2022
Best Practices When Granting Options
Liz previously blogged about how the SEC’s proposed insider trading rules can affect your option grant policies & practices. If you’re re-examining your option grant practices now, take a look at Foley’s short and sweet article outlining best practices on stock option grants for both private & public companies. The article gives a brief overview of the tax & regulatory considerations on grant timing and setting the exercise price, required approvals and other checklist items that companies sometimes overlook. One of these checklist items is to remember checking that the proposed option grants comply with the applicable equity plan’s terms – before the plaintiffs do it for you.
– Emily Sacks-Wilner