What is the difference between ISO and NSO stock options?

Incentive Stock Options (ISO): Tax-advantaged options available only to employees. Qualified gains are taxed at long-term capital gains rates if you hold shares for 2 years from grant and 1 year from exercise.

Non-Qualified Stock Options (NSO): No special tax treatment. The spread at exercise is taxed as ordinary income. Available to employees, contractors, and advisors.

What are RSUs and how do they vest?

Restricted Stock Units (RSUs) are company shares granted to employees that vest over time. Standard vesting is 4 years with a 1-year cliff (25% vests after year 1, then monthly/quarterly). RSUs are taxed as ordinary income when they vest based on the fair market value at vesting.

How should I negotiate my total compensation package?

Key strategies: (1) Get competing offers for leverage, (2) Negotiate all components (base, bonus, equity, sign-on), (3) Understand your market value using benchmarking tools, (4) Focus on total compensation (TC), not just base salary, (5) Ask about acceleration clauses and refresh grants.

What are the tax implications of equity compensation?

RSUs: Taxed as ordinary income at vesting. ISO: No tax at exercise if held properly; AMT may apply. NSO: Ordinary income tax on spread at exercise. ESPP: Discount taxed as ordinary income; gains taxed as capital gains. Always consult a tax professional for your specific situation.