Whether requirement of pre-clearance is applicable for exercise of employee stock options?
12 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 18 March 2021
No pre-clearance is required for employee stock options
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 18 March 2021
It should meet the exercise/ vesting period. Then they can dispose them.
Prachi Bansal
(3129 Points)
Replied 02 May 2021
How long before an employee should have worked in an organization before being eligible for the employee stock plans?
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 02 May 2021
I think it s usually one or two years
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 03 May 2021
It’s actually the comany wish. Sometimes years and sometimes they give to managers only.
Prachi Bansal
(3129 Points)
Replied 03 May 2021
okay? is there any amount fixed for the employee stock options which are given every year? Or this is also just on the company's wish?
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 03 May 2021
The employee can subscribe at a fixed price or at the fair value of share.how many he can get depends upon the company policy
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 03 May 2021
No problem, unlike equity forfeited re issue or allotment which is done on pro rata basis, eso standard doesn’t have any policy while issuing shares.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 03 May 2021
That is one way of allocating shares between all applicants. Go through this link- https://www.toppr.com/guides/principles-and-practices-of-accounting/issue-forfeiture-reissue-of-shares/pro-rata-allotment/
I also have read that applications are accepted on FIFO basis as well.
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