2min chapter

Equity Expert: A Podcast from the NASPP cover image

Tax Withholding Practices for Equity Awards

Equity Expert: A Podcast from the NASPP

CHAPTER

How to Pre-Fund a Company's Equity Program

Pre-funding is one of the things that you recommend just for our listeners. So how does pre-funding actually work? The company makes an estimate and pays in advance and then trues up afterwards. It looks like about 13% were pre-funding prior to vest and then another 4% were pre, but doing it just prior to when the shares were released.

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