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HOT OFF THE PRESS: For the #SpaceX IPO today, an article by The Wall Street Journal mentions myStockOptions and quotes our editor-in-chief Bruce Brumberg on the mega-impact that the company's IPO will have on employee equity compensation. wsj.com/personal-finan…

We're at the #NASPP regional New England event today! If you're there, stop by our table and say hello.

Stock compensation is rocket fuel for employees of SpaceX. Its IPO will make many of them millionaires. Here's what we learned about SpaceX stock comp in the company's IPO filing. #fintwit #SpaceX #IPO forbes.com/sites/brucebru…

We continue to analyze the @SpaceX Form S-1 ahead of the company's expected IPO next week. While the S-1 lacks meaningful details about the equity awards SpaceX has granted to its 22,000+ employees, beyond the equity comp it had to disclose for top executives, it does reveal important details about the post-IPO lockup restrictions on share sales. Also, we were very interested to learn that SpaceX has had an employee stock purchase plan (ESPP) for a few years. That is rare in a private company, especially one that plans to go public. Read on for more on all of these topics. While a post-IPO lockup restricting share sales by employees will take effect, the company does provide some flexibility for tax-related sales. The lockup restrictions do not apply to "sales of our common stock on behalf of our employees to satisfy the withholding taxes payable upon the vesting, exercise or settlement of such employee’s equity awards pursuant to our employee benefit plans." Beyond that, shareholders (including employees with stock in the post-IPO company) can sell up to 20% of their stock starting on the second full day of trading after the company releases its first earnings report. Plus, an additional 10% can be sold if the stock trades 30% above its IPO price for at least five of the 10 trading days after earnings are released. Other amounts can also be sold in rolling 7% increments at various stages after the IPO. See the detailed table appearing on pages 258-9 of its Amendment #2 to its Form S-1 SEC filing at sec.gov/Archives/edgar… However, missing from the S-1 are the specifics of the equity awards SpaceX made to its employees and how many shares may be sold for tax withholding. For example, it is not stated whether SpaceX grants double-trigger RSUs requiring both service-based vesting (i.e. worked at company for X period after grant) and a liquidity event (IPO) to occur before the RSUs vest. If SpaceX has made these grants, there will be a large number of RSUs that vest with the IPO and shares will be sold by the company for the taxes due. (I assume SpaceX grants RSUs, as later-stage startup/pre-IPO companies now generally prefer RSUs to stock options.) SpaceX has a history of being innovative with its equity compensation. It was one of the first private companies to establish regular share liquidity/repurchase programs for its employees. Thus we were hoping to get more details on its employee equity program, but they are lacking in the S-1. The filing presents merely a general discussion of the types of grants SpaceX can make under its stock plan, which "allows for the grant of stock options, both incentive stock options and 'nonstatutory' stock options; stock appreciation rights ('SARs'); restricted stock; RSUs; and other equity awards." For employee equity awards, it says only that the company has a "heavy emphasis on equity compensation to provide employees with a financial stake in our business and an ownership mindset. We offer a number of programs that allow employees to voluntarily elect to receive elements of their compensation in equity or to otherwise increase their ownership interests in the Company." What we did glean from the S-1, and find very interesting, is that the company has had an employee stock purchase plan (ESPP) for a few years. As mentioned earlier, that is very rare for a private company, particularly one that plans to go public. The S-1 states: "Historically, we have provided two employee stock purchase plans in which all of our U.S. employees, including the NEOs, are eligible to participate. Our Amended and Restated 2017 Employee Stock Purchase Plan (the '2017 ESPP') is intended to qualify under Section 423 of the Code and allows eligible employees to purchase shares of Class C common stock using accumulated payroll contributions at a discount. It is expected that the 2017 ESPP will be amended and restated in connection with this offering, as described below. Our 2023 Non-Qualified ESPP (the 'NQ ESPP') is not intended to qualify under Section 423 of the Code and allows eligible employees to purchase shares of Class C common stock using accumulated payroll contributions at fair market value. Our NQ ESPP will be discontinued in connection with this offering." For employees in IPO companies and their advisors wanting more education and ideas on IPO financial and tax planning, see the section Pre-IPO: Going Public at myStockOptions: mystockoptions.com/pre-IPO/going-… #SpaceX #SpaceXIPO @elonmusk

SPECIAL WEBINAR: Divorce becomes significantly more complex when stock options, restricted stock/RSUs, and company shares are involved. The next myStockOptions CE webinar explains key issues that arise when equity comp and company stock are part of the marital estate. Learn how to help clients protect assets through prenuptial and postnuptial agreements and navigate the challenges in divorce of dividing equity awards, valuing company stock, and negotiating settlements. Advisors who understand these issues can provide valuable guidance during one of the most difficult financial and personal transitions in a client's life. Watch live or on demand! Register at the link below! bigmarker.com/mystockoptions…

Amendment No. 1 to the SpaceX IPO filing (SEC Form S-1) shows an alternative way to compensate and reward employees other than using stock options and restricted stock units. @SpaceX is giving employees (and family members and friends of the company) the right to buy stock at the IPO price that they can sell at any time after the IPO without any lockup. Here is the wording in the new filing: "At our request, the underwriters have reserved up to five percent of the shares of Class A common stock offered by this prospectus for sale at the initial public offering price through a directed share program to certain employees and persons selected based on the discretion of our executive officers, which may include parties with whom we have a business relationship and friends and family of our executive officers. If purchased by these persons, these shares will not be subject to a lock-up restriction." Technically, this is a direct share program, being called in this case "friends and family shares." These programs are somewhat common in IPOs, although the structure and % can vary. The full amendment to the S-1: sec.gov/Archives/edgar… For employees in IPO companies and their advisors, see the section Pre-IPO: Going Public at myStockOptions for education and guidance on IPO financial and tax planning: mystockoptions.com/pre-IPO/going-… #SpaceX #SpaceXIPO @elonmusk

Sometimes new laws can be interpreted as applying to equity comp until clarified by guidance and rules. That's the case with California AB 692 (effective January 1, 2026) and New York's "Trapped At Work" Act. Under a broad reading of these laws, they impact equity comp by apparently restricting the use of any type of clawback-type clauses in equity agreements, such as those in new-hire or retention grants if the employee terminates. Our FAQ on how clawbacks work has been updated with details. mystockoptions.com/content/how-do…

Startups looking to create a stock option plan have many issues to consider, as do investors in them. In an article at myStockOptions, two attorneys with expertise in this area explain the various parts of private company stock plans, such as the share reserve, vesting provisions, and liquidity features. mystockoptions.com/articles/draft…

Along with his regular work at myStockOptions, our editor-in-chief Bruce Brumberg is also a high-school tennis coach every spring. This is his 16th season at the school in the Boston area where he coaches (and 26 years since he started myStockOptions). Here is the senior class of talented tennis players on Senior Night. They led the team to its eligibility for the Massachusetts state tournament, which starts next week.

In the award-winning tools of myStockOptions, we regularly update not just federal but also state tax rates that apply at RSU vesting or NQSO exercise. You can specify the state to use for taxes, along with your federal withholding rate and Social Security/Medicare. For more on our tools, which are available to license, see: mystockoptions.com/mytools/index.…

WEBINAR: Our Equity Comp Bootcamp (May 14) distills the complexity of stock comp and highlights what matters most: how grants work, how equity comp is taxed, and how to make planning decisions with confidence. Register at the link. Watch live or on demand! #fintwit #taxtwitter bigmarker.com/mystockoptions…

mystockoptions.com/job-events

This week it emerged that Meta, the company behind Facebook, plans to "unfriend" about 10% of its workforce. At myStockOptions, our "Job Events" section (link in replies) features resources that can help employees avoid mistakes with stock options and RSUs at job termination and negotiate new-hire equity awards at their next employers. businessinsider.com/meta-plans-lay…

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It's a relief to be done with tax season. Now, in this serene post-filing time, your attention can shift to bigger-picture financial planning. Our new quarterly alert (link in replies) highlights some of the major recent additions and updates at myStockOptions concerning financial planning for equity comp. Plus: planning for volatile or nervous stock markets; how to prep for a tender offer or IPO; how to negotiate equity comp to protect it in job loss; big updates for equity comp taxation in our Global Tax Guide; and tax-return blunders to avoid for those who filed an extension to Oct. 15.

April has been a busy month in the myStockOptions Global Tax Guide, an overview of equity comp taxation in 50 countries. Updates include tax numbers for the 2026-27 tax year in the UK, the latest in France's complex tax treatments of equity awards, and the introduction of a capital gains tax in Belgium: mystockoptions.com/global-tax-gui…

Happy Tax Day 2026. Can't beat the buzzer and file your federal tax return on time? See our FAQ on filing for an extension and the related mistakes to avoid: mystockoptions.com/content/if-i-f…

Few people have been working in the trenches of stock option taxation for as long as CPA Michael C. Gray. With the deadline for tax returns looming in just a couple of weeks, our new Forbes article interviews him about the complexity of stock option taxation—which continues to befuddle employees and even some tax pros. forbes.com/sites/brucebru…

mynqdc.com/alert-what-you…

The award-winning resources for tax returns at myStockOptions are matched at its sibling website myNQDC, all about nonqualified deferred comp. See the tax-season alert from myNQDC (link in the replies).