Annual ISO and ESPP Information Reporting Requirements

January.21.2014

Christine McCarthy and Michael Yang of Orrick’s Compensation and Benefits team published an alert providing guidance on IRS reporting requirements for incentive stock options (ISO) and employee stock purchase plans (ESPP).

Authors

Christine McCarthy Partner, Compensation & Benefits, Technology Companies Group

Silicon Valley

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D:+1 650 614 7634
E: [email protected]

Practice:

Technology & Innovation Sector
Compensation & Benefits
Technology Companies Group
Executive Compensation
Mergers & Acquisitions

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Christine McCarthy Partner

Silicon Valley

Christine has extensive experience advising on all aspects of equity and executive compensation plans and arrangements for multinational private and public companies, including large Fortune 500 public companies. Such advice covers the design, administration, and implementation of such plans and arrangements, as well as compliance with applicable federal and state laws, including corporate, securities and tax laws, NASDAQ/NYSE rules, and accounting rules. In addition, Christine counsels clients on corporate governance related issues that arise with respect to such plans and arrangements and regularly prepares disclosure required to be included in annual proxy statements, Form 10-K reports and Form 8-K filings.

Christine:

regularly advises compensation committees, Boards of Directors, companies, management and executives on employment agreements, severance agreements, equity compensation plans and agreements and similar arrangements;
has extensive experience advising late stage private companies on the specific compensation-related challenges facing these companies and, in particular, is known for her thought-leadership in designing and creating private company restricted stock unit programs and extended stock option exercise programs;
advises late stage private companies on the issues that arise during the preparation, lead-up to and implementation of their initial public offering, including issues related to executive and equity compensation, as well as, corporate governance and disclosure related matters; and
advises clients on merger and acquisition transactions, including issues related to executive and equity compensation, post-closing integration, Internal Revenue Code Section 409A (deferred compensation) and Internal Revenue Code Section 280G (the golden parachute rules).

Before joining the firm, Christine practiced at Cooley Godward Kronish LLP, Gray Cary Ware & Freidenrich LLP, and McDermott Will & Emery LLP.

Christine speaks and publishes articles regularly on executive and equity compensation related topics.

Michael Y. Yang Partner, Compensation & Benefits

Santa Monica

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D:+1 310 633 2804
E: [email protected]

Practice:

Technology & Innovation Sector
Compensation & Benefits

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Michael Y. Yang Partner

Santa Monica

Michael's practice focuses on the representation of U.S. and international public and private high technology companies, as well as executives, management teams and founders with compensation and employee benefits issues in the context of M&A transactions, spin-offs, venture capital financings and IPOs.

Michael also advises on day-to-day tax, employment, accounting and securities law issues in connection with the design, administration and implementation of executive compensation and equity compensation arrangements, including employment agreements, severance arrangements, change in control carve-out plans, stock option plans and employee stock purchase plans with a particular focus on Code Sections 409A, 280G and 162(m). In addition, he advises on nonqualified deferred compensation arrangements, tax-qualified retirement plans and welfare benefit plans.

Prior to practicing law, Michael was a Certified Public Accountant with Ernst & Young.

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Markets

Bay Area: San Francisco and Silicon Valley