Efficient compensation planning can be one of the trickiest disciplines of financial planning. It requires substantial knowledge in taxes, options, stock issuance, insider trading policies, corporate structure and governance. One wrong move could cost someone a substantial piece of their wealth that they can never recover.
We break compensation planning into two categories:
- Understanding and implementing strategies for W2, 1099, or K-1 employees
- Managing complex compensation tools such as stock options, RSUs, profit interests, appreciation rights, and equity grants
Stock options are complex, especially if you have a lot of shares with a start-up or a company approaching IPO. Mistakes could cost you thousands in missed gains and unnecessary taxes. The shares granted to you in the form of incentive stock options (ISO) or restricted stock units (RSU) could turn into millions of dollars. But, there are a lot of decisions you have to make:
- When to exercise?
- Should you sell if a pre-IPO liquidity event arises?
- How to pay for your exercise?
- How much to set aside for taxes?
- What about alternative minimum tax?
- How do you prepare for the initial public offering (IPO)?
Would you benefit from a review of your compensation package and stock options? Schedule an Appointment:
Meetings can also be scheduled by calling (888) 617-3402
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