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Equity Compensation

Stock options may be the greatest personal wealth creation machine that you will possess as an executive. They are also about the worst way to preserve wealth.

We know what it means to struggle with stock option decisions, often avoiding action due to uncertainty. We are familiar with having too much exposure to our employer’s stock, leaving us undiversified and unprepared. We know these things because we once sat in your chair.

It takes a keen understanding of how various forms of equity
compensation work in order to maximize their full potential.

Stock Options

Employee stock options utilize leverage which provides extraordinary upside potential. Unfortunately, many executives never achieve that potential due to the lack of an effective option management strategy.

We can help you:

  • Quantify the risk associated with your stock options
  • Understand the role they can play in your retirement plan
  • Determine when is the best time to exercise
  • Decide how to exercise and sell in a tax efficient way

Concentrated Position

One of the most common risks executives face is having a disproportionate share of their wealth tied to the fortunes of their employer.

Our work in this area includes:

  • Quantify the impact of concentration risk on your ability to achieve financial independence
  • Present strategies for reducing risk
  • Help you implement the strategies that are best for you

Deferred Compensation Arrangements

Irrevocable elections that determine how benefits will be paid in retirement often need to be made well in advance of retirement. Therefore, very careful planning is required when making decisions regarding these elections.

Restricted Stock

Although restricted stock grants don’t have as much upside potential as stock options, they can provide greater value during periods of volatile markets. Most strategic decisions around restricted stock involve elections that will determine when taxes are owed. We will advise you on those elections in light of your overall financial plan, and consider whether an 83(b) election is right for you.

Let us help you make the most of your equity compensation benefits and avoid unnecessary risk.


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