5 years ago12/30/2020

Exercise flow improvements

Optionholders at private companies will now see an improved exercising experience where they can clearly see fair market value (FMV), exercise spread, and option income.

Who this affects:

• Optionholders exercising option grants from private companies

What's new:

• Current fair market value (FMV) - Optionholders can see the current fair market value the issuing company has on file, which determines the tax implications of their exercise.

• Exercise spread on option grant - Optionholders can see the per-grant spread when selecting a grant to exercise. This shows the difference between exercise price and fair market value.

• Overall gain/loss - When selecting the quantity of shares to exercise, optionholders can see the overall gain/loss for their exercise. This is useful for understanding tax implications of an exercise.

• Tax implications - Optionholders will be able to see tax implications more clearly. If the exercise is taxable and the issuing company has provided tax rates for the jurisdiction of the holder, the holder will see a table of the relevant taxes for their exercise.

Gwynne Burgess