Employee stock option disclosure: mandatory risk, company and scheme information and ongoing document access required for grantees. The disclosure document requires firms to warn grantees that employee stock options entail concentration, leverage, illiquidity, and vesting and forfeiture risks, and to supply a business description, abridged audited financials, management risk factors, copies of member communications, and the scheme's salient features including vesting, exercise, corporate-action adjustments, and forfeiture; administrators giving advice must disclose concentration and other risks and follow an appropriate code of conduct.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Employee stock option disclosure: mandatory risk, company and scheme information and ongoing document access required for grantees.
The disclosure document requires firms to warn grantees that employee stock options entail concentration, leverage, illiquidity, and vesting and forfeiture risks, and to supply a business description, abridged audited financials, management risk factors, copies of member communications, and the scheme's salient features including vesting, exercise, corporate-action adjustments, and forfeiture; administrators giving advice must disclose concentration and other risks and follow an appropriate code of conduct.
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