Consider Your Options: Get the Most from Your Equity Compensation (Paperback)

~ (Author)

Editorial Reviews

Amazon.com Review

Just about everyone has heard a story about a corporate secretary or twentysomething Microsoft employee who retired early--as a millionaire--not because of winning the lottery, but because she exercised the stock options granted by her company. The fact is, many, many working Americans have access to stock and option plans in the workplace, and although it is a bit of a stretch to assume that such plans are a guaranteed ticket to riches, equity compensation can be an intelligent means for building wealth. The trick, according to Kaye A. Thomas, is understanding and handling it properly, and this is where Consider Your Options comes in.

Thomas, a veteran tax lawyer, has written a straightforward, no-nonsense, plain-language guide to getting the maximum value from your equity compensation. He begins with the basics--what stock is and how to buy and sell it, stock grants and purchases, options in general--and proceeds with clear examinations of nonqualified and incentive stock options. From there, he leads the reader through the ins and outs of exercising stock options, vesting, and employee stock-purchase plans, with an emphasis on tax implications and financial planning (an entire section of the book, for example, deals with the Alternative Minimum Tax).

"There are certain things about stock, options, and taxes that are almost never explained because every idiot knows them," Thomas writes. "Unfortunately, there are many normal, intelligent, educated adults who don't know these things--because hardly anyone ever bothers to explain them." Now that Thomas has bothered, novices and experts alike can avoid the common mistakes and poor planning that jeopardize the highest return from these benefits. --Svenja Soldovieri

Review

A very good overview of the tax and financial planning implications of stock options, written in a way that's useful to experts and understandable to those who are not. -- Corey Rosen, Executive Director, National Center for Employee Ownership

An excellent, thorough, and easy-to-read resource for anyone who has received stock compensation. -- Laura Fay, Vice President, E*TRADE Business Solutions Group

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Product Details

• Paperback: 248 pages
• Publisher: Fairmark Press (January 14, 2000)
• Language: English
• ISBN-10: 0967498163
• ISBN-13: 978-0967498164
• Product Dimensions: 8.4 x 5.5 x 0.8 inches
• Shipping Weight: 11.2 ounces
• Average Customer Review: 4.5 out of 5 stars  See all reviews (24 customer reviews)
• Amazon.com Sales Rank: #1,128,825 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

40 of 40 people found the following review helpful:

5.0 out of 5 stars Money well spent, March 1, 2000

By A Customer

Amazon Verified Purchase

No matter how well you think you understand the world of stock options, there's a good chance you will find some nugget of information in here that could save you A LOT of money.

In my case, I work for a small company. I actually had the company amend their stock option agreement based on information I found in this book. Based on the projected IPO price, this amendment will likely save me over $100,000 in the future.

A prior reviewer complained about the book and recommended a "tax professional". First, I have read this and Pastore's book, and this is hands down a better treatment of the subject. Second, if you are outside of Silicon Valley, then I wish you the best of luck in finding a CPA that knows anything beyond the basics as far as ISOs and 83(b) elections are concerned.

Buy the book AND find a tax professional. A tax professional does not have such a vested interest in your financial future, and you don't have his vast knowledge of the tax codes. I found that working together with my CPA and this book, we were able to do some excellent tax planning.

26 of 26 people found the following review helpful:

5.0 out of 5 stars Waste no time getting up to speed on Stock Options, April 2, 2000

By	R. Snodgrass (Seattle, WA) - See all my reviews (REAL NAME)

One of the few books available today on incentive (ISO) and non-qualified (NQ) stock options this does an excellent job of describing the basic ins and outs of how each type of employee stock option works. Unlike "Stock Options" by Robert Pastore, which is quite dry, this introductory book presents the material concisely and in a well-organized manner to quickly get up to speed. Of course a significant amount of the material found in this book can be read for free on the publisher's website. I would also highly recommend purchasing Pastore's book since it provides more strategies that you can actually apply, but read "Considering Your Options" first and then just flip through Pastore's book this to look at the strategies.

Just keep in mind that both of these books are only a first step at figuring out what you plan on doing. There is no substitute for a good tax account who is knowledgeable in the areas of stock options and estate planning. In addition there are many strategies that exist which aren't covered in either of these books. If you are trying to sort out what your strategy is for exercising your stock options it is well worth your time to read both of these. And you can't beat the price. If nothing else it saves you from shelling out $175/hour to hear an experienced tax accountant educate you on the basics.

17 of 17 people found the following review helpful:

3.0 out of 5 stars Plenty of details little advice..., May 9, 2000

By	Andrew Harbick (Harrisonburg, VA) - See all my reviews (REAL NAME)

I've tried, and struggled (I'm not a finance whiz... I write software) to create a strategy for using my stock options without the counsel of professional help. Learn from my experience. Reading this book, or any other book such as Robert Pastore's "Stock Options" will not equip you to make strategy decisions for exercising your options (unless you're gifted in finance). You will need a CPA and or financial planner.

Until I was granted options, I had no clue what stock options were or the issues that I would face. Having read this and other books, I'm now better educated about the issues but I was only given a vague idea of what to do practically/strategically.

Don't expect Ms. Thomas' book to provide "strategy advice" expect it to provide facts; and lots of them. Read her book and other's with the intention of going to someone whose full-time job it is to help you with issues in exercising your options. You will be well equiped to test what you're being told and you'll be ready to receive and act upon (or reject as I've also learned) real "strategic advice"