. . . Assumptions Employee is granted 100 shares at $1.00 per share 4 year fully vested and exercises options when fully vested Sells in year 6 for $11.00 per share Ordinary income tax rate 40% Capital gains tax rate 20% What is the employee's after-tax income under the four scenarios? Incentive stock options (ISO) Non-qualified stock options (NO) Restricted stock with no 83(b) election Restricted stock with 83(b) election Hint: if the employee gets ISOs, then Net after-tax proceeds are $800. Figure out how we got there and what the proceeds are for the other 3 scenarios. Here's a worksheet that might help. . . Years after Grant FMV Grant date 0 $1.00 Exercise date Fully vested 4 $6.00 Sale date 6 $11.00 ISO 10 . . . Assumptions Employee is granted 100 shares at $1.00 per share 4 year fully vested and exercises options when fully vested Sells in year 6 for $11.00 per share Ordinary income tax rate 40% Capital gains tax rate 20% What is the employee's after-tax income under the four scenarios? Incentive stock options (ISO) Non-qualified stock options (NO) Restricted stock with no 83(b) election Restricted stock with 83(b) election Hint: if the employee gets ISOs, then Net after-tax proceeds are $800. Figure out how we got there and what the proceeds are for the other 3 scenarios. Here's a worksheet that might help. . . Years after Grant FMV Grant date 0 $1.00 Exercise date Fully vested 4 $6.00 Sale date 6 $11.00 ISO 10