The NASPP Blog

February 4, 2014

Feeling Old

I’m feeling old.  So I thought to myself “why should I be the only one to feel old–I write a blog, why not make my readers feel old too?”  With that in mind, I’ve created the How Old Are You Game. 

How to Play
I’ve listed a number of major events in stock compensation and how long ago they occurred.  Give yourself 1 pt for every event you personally experienced during your career in stock compensation. 

Event How Long Ago
The Social Security withholding rate was 4.2% and the JOBS Act was enacted (click here if you don’t remember the significance of JOBS, it’s too complicated to explain in this table). 2 years
Cost-basis reporting went into effect. 3 years
Dodd-Frank was enacted. 4 years
The last year that Section 6039 just required a participant statement, not a filing with the IRS. 5 years
The SEC adopted a roadmap that would have had companies adopting IFRS this year. 6 years
Congress passed the Jobs Creation Act (not to be confused with the JOBS Act) which created Section 409A but also exempted ISOs and ESPPs from FICA and FIT withholding, FAS 123(R) was adopted, and IFRS 2 was issued. 10 years
Required EDGAR filing went into effect for Section 16 forms and the NYSE and NASDAQ adopted listing standards requiring shareholder approval of virtually all employee stock plans. 11 years
Sarbanes-Oxley was enacted, the IRS issued the first Rev. Rul. on the treatment of stock options transferred pursuant to divorce, and the IRS imposed a moratorium on FICA withholding for ISOs and ESPPs. 12 years
FIN 44 and EITF 96-18 were issued. 14 years
The IRS issued an FSA requiring FICA withholding on ESPP purchases. 15 years
The IRS ruled on the tax treatment of gifted options and the NYSE adopted a rule exempting broad-based stock plans from shareholder approval. 16 years
The long-term capital gains rate was reduced from 28% to 20%, Myron Scholes was awarded the Nobel prize for the Black-Scholes model, and FASB dispensed with primary and fully diluted EPS in favor of basic and diluted EPS. 17 years
The last ISOs that had to be exercised in sequential order based on grant date expired and the SEC completed the phase-in of EDGAR for all public filings (except Section 16 reports and Form 144). 18 years
The original FAS 123 was adopted and T+3 went into effect. 19 years
Section 162(m) was enacted. 21 years
The SEC significantly expanded the required disclosures relating to executive compensation, forming the basis for the disclosure framework in place today. 22 years
The SEC introduced Form 5. 23 years
Long term capital gains were last taxed at the same rate as wages. 24 years
The SEC adopts Rule 701. 26 years
Reg T was amended to allow same-day sale exercises. 27 years
Section 280G was enacted and the FASB solicited comments for the first time on APB 25 with a view towards adopting a new accounting standard for stock options. 30 years
ISOs became subject to AMT. 31 years
Congress created ISOs. 33 years
IRS issued a ruling allowing stock-for-stock exercises to be treated as a tax-free exchange of property. 35 years
The Black-Scholes model was developed. 37 years
APB Opinion No. 25 was adopted. 38 years
The FASB was formed. 41 years
Congress created “qualified stock options,” the predecessor to ISOs and ESPPs. 50 years
The Accounting Principles Board was formed. 55 years
The SEC was created. 80 years

 

Score:

  • 0 Points:  You are always the youngest person in any business meeting and look forward to being old enough to drink and rent a car.  I used to be your age; enjoy it while you can.
  • 1 to 5 Points: You are old enough to know better but still young enough not to care.
  • 6 to 20 Points:  You are humming the tune to “Much to Young (to Feel This Damn Old)” by Garth Brooks and sort of regret playing this game.
  • 21-26 Points:  You are Ed Burmeister.
  • 27 or More Points: You are reading this from the deck of your seniors’ cruise ship or the golf course (or you are seriously wishing you’d saved a little more for retirement).  It is also possible that you are dead.