What’s the Difference? Incentive Stock Options (ISOs) versus Nonstatutory Stock Options (NSOs)

In deciding how to best compensate employees in a startup, clients often consider stock options as a viable choice. But even once the decision is made to move forward with stock options, clients are still left to decide whether to grant Incentive Stock Options (ISOs) or Nonstatutory Stock Options (NSOs). This post outlines both the similarities and the differences between these two forms of equity compensation to help guide you in that decision.


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