A company's equity incentive plan is also called the employee stock option plan. It outlines the company-wide program of granting different types of equity compensation. The typical types of stock and stock options include: restricted stock.
The 100K Rule1 states that employees cannot receive more than $100K worth of exercisable incentive stock options (ISOs) in a calendar year.
ESOP shares can be sold once you complete the employer's vesting period.
You have taxable income or deductible loss when you sell the stock you received by exercising the option. You generally treat this amount as a capital gain or loss. For specific information and reporting requirements, refer to Publication 525.
ESOP stands for employee stock ownership plan. An ESOP grants company stock to employees, often based on the duration of their employment. Typically, it is part of a compensation package, where shares will vest over a period of time.