Laid Off ISO vs. NSO Options

2 pointstakklz3 comments

Hey all,

I was recently laid off from DataRobot. Womp womp.

Anyways, they gave me the option to extend all my ISOs excercise date for a year, but to do so they will be converted into NSOs.

Is the tax benefit really worth that much more that I should exercise them now? Could I potentially be missing something else?

It depends on the spread between your exercise price and the fair market value, and if you own enough to trigger AMT.

Hmmm I suppose I should figure out the fair market value! (Is this even possible if they are private?). Thanks for the heads up.

Yes, the company should be getting a regular 409A valuation. They should be willing to share this with you when you exercise shares.