Can Remote customers offer stock options to employees under their stock option plan?

Article author
Nneka
  • Updated

Yes! Our clients are able to directly offer stock options to employees that are employed through Remote. They cannot be offered as incentive stock options (ISOs) because the employee is employed by Remote, but they can be offered as any of the following: 

  • NSO (Non-Qualified Stock Option): NSOs are a type of stock option that has less favorable tax treatment relative to ISOs. However, they can be issued to anyone providing services to a company. 

  • RSU (Restricted Stock Unit): RSUs are a form of compensation in which a company provides an employee shares in the company when certain conditions are met. RSUs are awarded according to a vesting schedule and do not need to be exercised.

  • VSO (Virtual Stock Option): VSOs are the right to a cash bonus, which is determined by the market value of a number of shares of company stock. VSOs are also called “phantom stock” and are most popular in European countries, but can be used anywhere. 

 

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