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Republican Tax Plan May Leave Future of Stock Options in Flux

  • Stock options would be taxed immediately when they vest
  • Could lead to companies scrapping the contracts altogether
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Winners and Losers From GOP Tax Proposals

Stock options, a staple of executive compensation, could cease to exist under the Republican tax plan, which proposes to classify them as deferred pay, or money that’s already earned but received at a later date.

The GOP plan could “cause options to be extinct,” said Ian Levin, a partner at law firm Schulte Roth & Zabel.