Stock Awards vs. ISOs vs. NSOs

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Holloway Guide ToEquity Compensation
Common questions covered here
How are stock awards taxed compared to stock options?
Are taxes the same for stock options and stock awards when they vest?
Are taxes the same for stock options and stock awards when they're sold?
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Stock Awards vs. ISOs vs. NSOs

Because the differences are so nuanced, what follows is a summary of the taxes on restricted stock awards, ISOs, and NSOs, from an employee’s point of view.

Mary Russell, a lawyer who specializes in equity compensation, recommends each form of equity be used at the appropriate time in private companies: restricted stock awards for the earliest stage of a startup, stock options with longer exercise windows for the early to mid stage, and RSUs for the later stages.*

If you relish tax complexity, you can learn more from:

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