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Equity Compensation 101
By Gary T. Moyer, April 11, 2000
ISO Requirements (con’t)
- Option Price
- The exercise price must equal or exceed the fair market value of the shares on the date of grant
- For ISOs granted to persons owning 10% or more of Company’s outstanding stock, the exercise price must equal or exceed 110% of the FMV of the shares
- Employment at Time of Grant
- The person to whom the option is granted must be an employee of the Company (or its parent or subsidiary) on the date of grant
- ISOs cannot be granted to independent contractors or non-employees (including non-employee directors)
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