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SEC Proposes New Exemptions From Exchange Act Registration for Compensatory Employee Stock Options
August 1, 2007 Full PDF
After having provided relief on an ad hoc basis through no-action letters, the SEC has now proposed for public comment amendments to Exchange Act Rule 12h-1 to provide relief for such non-reporting companies that issue options to 500 or more eligible participants under their option plans and to provide clarity for such reporting companies by establishing an express exemption that obviates the need for separate Exchange Act registration of options. The proposed amendments would: (a) provide an exemption for compensatory employee stock options issued by private, non-reporting issuers under employee stock option plans; and (b) provide an exemption for issuers that have registered under Exchange Act Section 12 the class of equity securities underlying the compensatory employee stock options from having to separately register the options.