Employer Stock Options
Our Equity Benefit Management Process
Step 1: Identify Your Goals
We prioritize personalized financial planning, so we always start with you. We’ll ask questions to help us understand your financial priorities and personal goals and create a balanced plan to manage your stock options.
Step 2: Understand Your Awards and Risk
Employer Stock Options, Restricted Stock, Deferred Compensation, and Employer Stock Purchase Plans (ESPPs) are all crucial considerations when choosing an employer, negotiating benefits, and creating a wealth management plan. Employer Stock Options are interest-free loans from your employer that don’t have to be paid back if the stock price drops below it, meaning they are worthless at the time they’re granted. A Restricted Stock (award or unit, sometimes referred to as an RSU, or Restricted Stock Unit) is a bonus paid to you in stock instead of cash. ESPPs allow you to purchase company stock at a discounted price.
We help you understand the benefits and risks associated with each type of stock option so that you feel empowered to navigate your finances and capable of making choices that fit your needs.
Step 3: Create Balanced Strategies
Once you understand the ins and outs of equity compensation, we’ll help you create a plan that aligns with your goals. This may include combining options and deferred compensation plans, selling ESPP or RSU shares, repositioning stock holdings, or deferring the vesting of RSUs into lower-income retirement years. We’ll make sure you understand the what, why, and how of every recommendation we make and evaluate every decision by how well it helps you feel the freedom to live life without worrying about your finances.
Step 4: Determine What and When to Sell or Exercise
When you feel ready to make a change in your employer stock holdings, we’ll help you make moves where they will have the greatest impact and ensure you understand all of the ripple effects.
Step 5: Navigate Tax Consequences and the Supplemental Withholding Rate
Of course, you can’t forget to consider tax implications. The Supplemental Withholding Rate is an optional federal flat rate for withholdings on supplemental wages up to a set limit. Rates are updated annually and may differ by state or territory, but using them can simplify your equity compensation income tax withholdings. Our team of qualified professionals works with you to create and implement a tax-advantaged strategy to help you make the most of your financial situation.
Choose Balance in Every Area
We’re passionate about helping you implement strategies and habits that will help you feel the freedom to live your life beyond the office and the numbers. We offer a range of financial planning services and solutions designed to provide you with confidence, ease of mind, and a freer schedule in areas like retirement planning, education saving, and purchase goals. Learn more here.
