Case | HBS Case Collection | 2005 (Revised from original 1999 version)

Steady Earner, Inc.

by Henry B. Reiling and Mark Pollard

Abstract

An employee is permitted to choose any one of three stock option plans. The first involves options that are in the money and must be exercised within 10 years. The second involves options that are at the money and must be exercised within 10 years. The third involves options that are at the money and must be exercised within 15 years. A wise decision requires students to consider a number of tax and nontax business considerations.

Keywords: Employee Stock Ownership Plan; Taxation; Stock Options;

Citation:

Reiling, Henry B., and Mark Pollard. "Steady Earner, Inc." Harvard Business School Case 299-080, August 2005. (Revised from original March 1999 version.)