Until the rules changed a few years ago, companies preferred awarding “at the money” stock option grants because of the favorable accounting treatment the IRS afforded them.

Under the old regulations, companies didn’t have to record a compensation expense for “at the money” grants. An employee who received an “at the money” grant could, when the options vested at some later date, buy shares at the price they traded at the day the option was awarded.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]