This cash flow table will highlight the details of a client's stock grants as they're projected out into the future, such as when shares vest and exercise, when shares are sold or held, and the sale proceeds and taxation for each year:
Options | Definitions |
|---|---|
New Grant | The year when shares of stock options or units are granted to an employee. |
Shares Vested | The volume of shares that vest in that year. This is when the client takes ownership of the stock that was granted to them. |
Shares Exercised | The volume of shares that are exercised in that year. This is when the client purchases the shares of stock that have vested. |
Vested and Exercisable Shares | Reflects shares that have vested but not exercised. |
Unvested Shares | Reflects shares that have been granted, but not yet vested. |
Shares Sold | Reflects the number of shares sold in a given year. |
Shares Held | Reflects the number of shares exercised, but not yet liquidated. |
Cost of Exercise | Equals shares sold times the strike price. |
Sale Proceed | Equals the shares exercised multiplied by the current price per share. Please note, the growth applied to the current price can be set within the Stock Plan plan on the Profile > Net Worth tab. |
Net Cash Flow | Reflects the difference between the sale proceeds and the cost of exercise. |
Ordinary Income | Income that is taxed at the marginal tax brackets. |
Short-term Gain | A gain from stock that has been owned for one year or less. Taxed as Ordinary Income. |
Long-term Gain | A gain from stock that has been owned for longer than 12 months. Uses its own tax brackets. |
