Fee TransparencyWhat Is Equity Compensation?
Equity Compensation, also known as stock-based compensation, is a type of non cash benefit that gives employees ownership or “phantom” ownership of a company. It can be a significant incentive offered by employers to align the financial goals of the company and the employees being granted this form of compensation.
Service ObsessionThe most common forms of equity compensation include:
Incentive Stock Options (ISOs) , Non-Qualified Stock Options (NQSOs), Restricted Stock, Restricted Stock Units (RSUs), Restricted Stock Awards/Grants (RSAs/RSGs), Employee Stock Purchase Plans (ESPPs), Stock Appreciation Rights (SARs), and Phantom Stock.
How We Help
Equity compensation can be a powerful tool for building wealth, but without guidance it can be confusing and overwhelming.
We help people navigate the intricacies of their equity compensation by:
Demystifying the Complex:
We’ll translate the jargon, explain your equity awards, go over its potential value, help you understand the decisions that will have to be made, and inform you overall on the situation that is presented to you.
Crafting a Personalized Strategy:
Everyone’s financial situation is unique. We take the time to understand what you are looking for with your equity compensation and how it ties into the rest of your financial goals. Using the best software in the industry we take a scalpel to the mathematics. We design a plan, monitor your awards, and communicate with you to ensure we maximize the quantitative value of your awards.
Optimizing Timing:
Timing is everything. We’ll guide you through the optimal times to exercise, sell shares, wait for vesting, hold for growth, implement 10b5-1 plans, and file forms.
Shrinking your Tax Bill:
It’s crucial to making the most of your equity awards. We assist clients in navigating the most tax-efficient strategies. From 83(b) elections to capital gains awareness and intentionality. Implementing the proper strategies can be the difference between saving thousands, if not millions of dollars in taxes especially in cases of an IPO.
Integrating with your Overall Financial Plan:
Your equity awards can be a huge part of your financial plan but they’re not everything. We keep a big picture perspective while working with you. That means ensuring that the awards are working towards your true financial goals and working in alignment with the rest of the strategies we would recommend. We are big believers in all parts of your financial plan talking to each other, no strategies that we recommend operate in isolation, they are each one cog in your broader financial system.