An incentive stock option (ISO)plan is considered to be a deferred compensation arrangement.

Question

Quizplus · Accepted Answer

ISOs are a type of employee stock option which allow employees to purchase company stock at a discounted price. They are considered a form of deferred compensation because the employee does not immediately receive the benefit of the stock purchase, but rather holds onto it until a later date when they choose to sell it.

An Incentive Stock Option (ISO)plan Is Considered to Be a Deferred