Lloyd is the CFO for a firm that uses ISOs as part of its executive compensation plan.He receives annually $150,000 semi-monthly in base salary plus 25 shares of the firm's stock per month.The stock is omitted from gross pay calculations and is valued at $52.50 per share and he may exercise his option within five years at $0.10 per share.What is Lloyd's gross pay for mid-October?
A) $7,250
B) $6,250
C) $7,560
D) $8,250

Question

Quizplus · Accepted Answer

Lloyd's semi-monthly base salary is $150,000 / 24 = $6,250. The stock is not included in the gross pay calculation, so his gross pay for mid-October is $6,250.

Lloyd Is the CFO for a Firm That Uses ISOs