Lead-Lag Live Equity Isn’t Ownership: Kaitlyn Walsh on Stock Options, Tax Traps, and the Mistakes Employees Regret
Jan 21, 2026
Kaitlyn Walsh, a wealth advisor and equity analyst, dives into the complexities of employee stock options. She clarifies that owning options doesn't equate to owning shares, creating a common misconception. Kaitlyn discusses the importance of understanding fair market value and how strike prices work. She highlights common mistakes made around vesting and exercising options, and warns of unexpected tax implications. Additionally, she emphasizes the necessity of meticulous record-keeping to avoid costly errors down the line.
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Options Are Rights, Not Stock
- An ISO grant gives you the right to buy shares but not the shares themselves.
- Kaitlyn Walsh emphasizes that equity aligns employee effort with company value growth.
Why Companies Use Equity Grants
- Companies grant equity to incentivize employees to grow company value rather than pay higher cash salaries.
- Early-stage firms often prefer equity because they may lack cash to offer competitive pay.
Ask About FMV Timing
- Ask what the fair market value (FMV) is and when it was last updated when evaluating an offer.
- Remember FMV is set via a 409A valuation and usually updated at least annually or after material changes.