A guide to private awards

Private awards can give you an opportunity to own a part of your company and potentially share in any future success.

How private awards work


Receiving an award from your company is a big deal—congratulations!


Accepting your award and opening your account
To accept the award and make it officially yours, go to Fidelity NetBenefits®Log In Required. If you're new to Fidelity, you'll be asked to create a username and password and then open a Fidelity brokerage account (the Fidelity Account®) when you accept your award. If you already have an eligible account with us, we'll link your award to that account.


Tracking your award value
The value of your award is based on a share price that's calculated by your company. You'll be able to view your award at NetBenefitsLog In Required.


Receiving your payout
Depending on your plan, your award will pay out or the stock option will become yours to exercise when you meet your company's vesting requirements. Any shares paid out to you are added to the company's ownership record (commonly known as the Cap Table).


Understanding your taxes
Your award is considered taxable income when it vests and/or when you exercise any eligible stock options. In some instances, you can choose an 83(b) election and pay the income taxes when the award is granted instead of when it vests.


Getting help
We'll stay in touch through the full life cycle of your award and let you know when there's action to take. Head to your Profile pageLog In Required to confirm your contact information is correct, so you never miss an update or time-sensitive communications.

Make the most of your Fidelity brokerage account


Your private award is automatically linked to a new or existing brokerage account. You'll need this account for award transactions such as exercising options.


With this account, you can manage your stock plans, transfer cash to your bank, trade shares (and other financial assets like bonds and mutual funds), and access Fidelity's financial tools and resources.


Explore the Fidelity brokerage account

Your Stock Plan Resource Center


The Stock Plan Resource Center provides the help and education you need to understand how your equity compensation works, including taxes, selling and managing shares, and planning for your financial goals and priorities.


Visit the Stock Plan Resource Center

Frequently asked questions

  • What does it mean to "early exercise"?

    Exercising unvested options, also called early exercise, allows you to purchase shares by exercising your stock options before their vesting date. If combined with an 83(b) election, early exercising may help you to manage and even minimize your tax obligation.

  • What's an 83(b) election?

    An 83b election allows you to pay taxes on the value of your award at the time of grant instead of at the time of vesting. You might choose an 83(b) election (subject to your company’s plan rules) if you believe the price of the stock will be higher on the vesting date (or exercise date, if you have stock options) than on the grant date.

  • What happens to my award if I leave the company?

    There are usually special rules in the event you leave your company, retire, or pass away. Check your plan documents for details.

  • What is a "Cap Table"?

    A Cap Table ("cap" is short for "capitalization") is a list of who owns stock and stock options in a private company. Since your shares are private, they won't appear in your Fidelity brokerage account, but you can view them in your company's Cap Table.

  • Where can I find my stock plan documents?

    Go to NetBenefitsLog In Required, select "Stock plans," and on the Stock plan summary page, select "Plan documents."

Resources

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