this post was submitted on 11 Mar 2024
369 points (95.1% liked)
Technology
59149 readers
2009 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
If it has a dollar valuation, if it's taxable, it can be liquidated.
Are you talking about writing them off?
Options come with the obligation to pay for the underlying asset, so unless they are valued above the strike price, they are effectively worse than worthless.
No, I'm talking about real compensation.
Is it just options specifically, or grants, or ...?
Would the reported compensation be at the strike price, or the current valuation, or the difference?
Not American, but I would assume the Black-Scholes model will be used for valuation.
Face value is unlikely to be the amount reported - I doubt the options are granted below the last reported market rate. Hence it's probably relative to the amount of underlying stock the options represent.
You'd have to check the SEC-filings for more accuracy than that.
Options can come with or without the obligation to buy the underlying asset. I'd assume they will never be worth less than worthless.
Less than worthless would be when exercised, not exercising would be worth 0 - unless you paid for the option contract, in which case not exercising would represent a loss.