Hi,
I worked for a start-up company years ago and I was issued with a number of stock options. The same company is currently being bought out by another UK based company and as a option holder I have been issued with 3 choices but only been given 4 working days to decide what to do and return the documents or stand to lose any entitlement.
the choices are:
1) exercise and sell the options; the would result in a thre part payment over two years. The first payment would be immediately and is being paid to cover any tax liabilities I would have. The company advised me that I would be liable to income tax at the higher rate and also capital gains.
2) do nothing and lose my entitlement
3) exercise but opt not to sell; I have been informed that the shares may still be bought under drag provisions or alternatively if not purchased I would end up being a minority shareholder in an illiquid company with no reasonable prospect of realising value.
The company are advising me to take the first choice but the first payment is all due in tax and therefore there is very benefit in for me.
Can anyone advise what would most likely happen if I went with option C..
I need to have the document returned by Wed or I will lose it all so I don't have enough time to seek full legal advice.
Thank you,
caroline