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Option Buyout

We have an exiting employee who has stock options.  We are buying out his vested options, for cash, at just under the 409A valuation price.  It's called out as a repurchase - but I think I would treat it as a cashless exercise and deduct tax from the proceeds before paying the employee.  Am I missing anything?  Thanks!

Answers

Topic Expert
Patrick Dunne
Title: Chief Financial Officer
Company: Milk Source
(Chief Financial Officer, Milk Source) |

You are correct. We are private and have the same issue arise. We run these through payroll.

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