Comments on: how has sarbanes oxley affected employee eligibility files? http://compliancesarbanesoxley.com/sarbanes-oxley/how-has-sarbanes-oxley-affected-employee-eligibility-files Compliance Sarbanes Oxley, A Resource Guide for New and Established Businesses Requiring Sarbanes Oxley Compliance Sat, 04 Sep 2010 06:30:59 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Jo http://compliancesarbanesoxley.com/sarbanes-oxley/how-has-sarbanes-oxley-affected-employee-eligibility-files/comment-page-1#comment-112 Jo Wed, 25 Nov 2009 00:50:59 +0000 http://compliancesarbanesoxley.com/sarbanes-oxley/how-has-sarbanes-oxley-affected-employee-eligibility-files#comment-112 I believe you're referring to Sarbanes-Oxley requirements with regards to options grants. I don't know why you would send an employee eligibility file to a third party, unless you're talking about employees who;'ve already left the company.. It is important to determine the employment status of an employee prior to granting options. Close coordination is required between Human Resources and the Equity Compensation departments. Employment status is particularly important when an employee receives an option grant as part of the employment offer. These grants are commonly referred to as “new-hire grants.” If the Plan permits and the grant is made prior to becoming an employee, the effective date of the option and the appropriate exercise price may vary (i.e., the date of the employment offer, the date the offer was accepted, or the date employment commenced). Options granted to a non-employee (i.e., granted prior to the commencement of employment) who renders service to the company are subject to the provisions of FASB Statement No. 123, “Accounting for Stock-Based Compensation” and EITF Issue No. 96–18, “Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services.”<br><b>References : </b><br> I believe you’re referring to Sarbanes-Oxley requirements with regards to options grants. I don’t know why you would send an employee eligibility file to a third party, unless you’re talking about employees who;’ve already left the company..

It is important to determine the employment status of an employee prior to granting options. Close coordination is required between Human Resources and the Equity Compensation departments.

Employment status is particularly important when an employee receives an option grant as part of the employment offer. These grants are commonly referred to as “new-hire grants.” If the Plan permits and the grant is made prior to becoming an employee, the effective date of the option and the appropriate exercise price may vary (i.e., the date of the employment offer, the date the offer was accepted, or the date employment commenced). Options granted to a non-employee (i.e., granted prior to the commencement of employment) who renders service to the company are subject to the provisions of FASB Statement No. 123, “Accounting for Stock-Based Compensation” and EITF Issue No. 96–18, “Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services.”
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