Replies to post #413399 on InterDigital Inc (IDCC)

[sab63090]

Stock grants are normally @ zero cost & considered a form of taxable compensation .....options are leveraged compensation and are normally larger than stock grants. Many execs sell just enough stock (on their stock grants) to pay the taxes and then establish a cost basis for the rest. Stock options are sometimes exercised as a cashless exercise for all or part and when granted are (now after look backs were killed) related to current market prices, as you indicated.

So there are 2 parts to consider.

Stock grants are restricted to holding periods and mostly happen yearly on their vesting schedule, a taxable event with no control by the person receiving them.

Option grants are normally issued with a longer term vesting schedule...10 yrs....they are taxable upon exercise.