from a career DOJ lawyer, a scathing op-ed piece about the Bush administration.
via Isen.
Technorati Tags: politics, bush, doj
Archive for July 18th, 2007
I hadn’t heard of it, but it sounds like a good idea for a startup. If you’re giving restricted stock, you give it with an attached right-to-repurchase at $0.01/share, and then the company’s right to repurchase is periodically canceled on fractions of the transaction.
Why good? (at least as far as I understand it) The dev gets the shares when they’re worth pennies on the dollar and is taxed on that basis, and then any improvement in the price will be taxed as capital gains… better for the dev in the long run. It’s also a smaller hit to the new company, since the value you’re giving away is minimal. The only challenge would be using this strategy at an established, publicly-traded company… where the stock may have enough value at the start that it could be a big tax hit for that initial grant.
Technorati Tags: options, payment, vesting, taxes, startup
