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ISO's/Non-statutory plans and ERISA


Guest Mr. Joseph

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Guest Mr. Joseph

Company wants to adopt a statutory Incentive Stock Option plan under section 422. Company will also adopt a Non-statutory incentive stock option plan for some non-managment employees. If too many employees participate in the plan, won't that subject the plan to ERISA? Don't the plans have to be limited solely to key managment employees in order to be exempt from ERISA? Can anyone list the statutory exemption for an ISO and also a non-statutory plan to fall outside of ERISA? Any resources to look at?:confused:

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Guest David Thomas

Stock option plans are not subject to ERISA because they are not either welfare benefit plans or pension benefit plans under the definitions ERISA. See the definitions in ERISA Section 3.

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