Singapore tech workers face volatile share price, tax burden with stock options

AS SHARE prices of tech companies rallied over the last decade, generous stock grants and options dished out by companies led to windfalls for many employees. But with the recent slump in tech stocks, maximising gains from such instruments has become trickier.

Jane (not her real name), a Singapore-based employee of Amazon, experienced this first-hand when she was hit with a tax bill this year that was more than triple her monthly net salary. Even if paid in instalments over 12 months, the tax bill would eat up a quarter of her pay cheque every month.

The hefty bill arose because a portion of her restricted stock units (RSUs) or employee stock option plan (Esop) vested when Amazon’s share price was over the US$150 mark, close to its highest level in 2022.