Montgomery Investment Technology is pleased to bring you a series of White Papers which explain the structure, risks, and rewards of employee stock options from the point of view of the recipients (participants in a stock option award program). In the first installment, we explain how an employee stock option works and point out the key features which should be understood by every recipient. The second installment discusses the value represented by an employee stock option as compared to ordinary cash compensation. Both of these white papers are currently available on our website, www.fintools.com, under the Resources tab.
In upcoming white papers in the series, we will discuss the pros and cons of the various courses of action a recipient could take with his options and how the recipient can protect their value in an uncertain market. Montgomery Investment Technology is an industry leader in the valuation of share-based compensation awards and advises a wide range of corporate clients on matters regarding their equity compensation programs. We feel that education in the most effective use of equity compensation will result in benefits for all concerned.