Stocks are units of ownership in a company, also known as shares of stock or equities. When you buy a share of stock, you’re purchasing a partial ownership stake in a company, entitling you to certain benefits.

Designing an Actionable Plan for Your Company Stock

Whether they are stock options, RSUs, or a combination of the two, a concentrated company stock position is likely to represent a significant portion of your net worth. For executives and employees alike, making sense of stock grants and putting an actionable plan in place to address personal goals is critical to long term financial success. It will quickly become apparent that company stock planning requires a different approach than your current wealth plan.

What’s In a Plan?

Having a clear view of how this influx of wealth affects your long-term goals is critical to your future financial success. This can be accomplished with careful planning to address regulatory restrictions and tax implications.

While every individual is unique, the following is a list of the common areas of consideration that we routinely address with our clients:

• What kind of grants do I have and what are they worth?
• I have ISOs and NSOs - how should I plan accordingly?
• When should I exercise my options? How many options should I exercise to avoid AMT?
• How much of my total compensation is derived from RSUs?
• How do I put together a comprehensive strategy for my RSUs?
• How do I best diversify my company stock?
• What are the taxes involved with vesting, exercising, and selling stock?
• What company rules and restrictions am I subject to?
• What should I consider for short- and long-term wealth planning?
• What estate planning strategies should I consider?