Video: Introduction to Stock Compensation

In this lesson, unravel the intricacies of stock compensation, where Nick Palazzolo, CPA, delves into the mechanics behind stock options and how employees can capitalize on company stock through various plans with vesting dates or periods. He clearly outlines the restrictions that come into play with stock acquisition and how employees stand to gain by purchasing shares at prices lower than the market rate. Moreover, Nick distinguishes between compensatory and non-compensatory stock options and purchase plans, setting the stage to explore the differing accounting treatments for each scenario. This introduction lays the groundwork for understanding a complex area of employee compensation and its implications in the realm of accounting.