It’s About You
Executives often have access to unique benefit plans that require careful consideration. Each benefit package has a different set of options and understanding how they fit into your overall financial plan can be challenging. A coordinated understanding of the tax, investment, financial planning and legal implications of these types of plans is critical.
Each benefit plan is reviewed to understand the nuances of the plan, an outline of what is available is created, and then, in coordination with you, we decide which options to select that benefit you the most from a tax and financial planning perspective.
Key considerations may include:
- How are you determining which executive compensation plans to participate in and to what extent?
- Have you done anything to protect yourself from adverse stock price movement while participating in an executive compensation plan?
- Have you carefully weighed the timing of your executive compensation with your retirement plan and tax liabilities?
- Are you aware of the tax differences between ISOs, NQSOs, and RSUs and how they fit into your overall tax plan?
- Have you considered a coordinated tax plan to diversify your company stock?
Prior to making any recommendations, we will take an inventory of your assets and liabilities to see which options are most applicable to you. Once we know where you stand financially, we will model the options and integrate the choices that offer the most benefits into an overall tax plan. From there, we will coordinate your tax plan with your long-term financial plan. You will have a clear understanding of how all the choices we make help you get one step closer to achieving your goals and designed to be the very best, unique strategy for you.
What We Do
Wading through the available options in an executive compensation plan can be a daunting task to most individuals, especially if it is new to them. Knowing how to identify which options make the most sense and how they affect your overall financial plan is difficult to determine. Our team of tax accountants and financial planners provides clarity on the options available, how best to coordinate the use of each one, and the potential benefit of the selected options. Once we agree upon a plan, we revisit it each year as income, bonuses, or the available options change to ensure the choices we make each year make the most sense for you.
How We Help
- Modeling the tax liability in each year and the options available to reduce or defer the tax burden
- Coordination of your executive compensation with blackout periods and 10b5-1 trading plans
- Examining the risk, return, and tax characteristics of holding or diversifying a concentrated stock
- Providing guidance on when to exercise or sell stock options in a tax efficient way
- Managing your overall portfolio to limit company specific risk while maximizing the benefits in the plan