Incorporating Equity Awards And Options Into Your Financial Plan
Equity-based compensation has become an important component to the total compensation of many executives.
Employer’s seek to create a link between the employees’ net worth and the corporation’s performance. Typically, as an employee rises through an organization, equity-based compensation becomes a greater percentage of their compensation — and of their net worth. There may be many different kinds of equity awards — each with there own special characteristics.
Employees in this situation may face a number of additional challenges that others may not, including:
- Concentrated stock positions
- Understanding the various restrictions on the options
- Tax ramifications upon receipt and/or executing stock options
JIC will develop recommended strategies based on each executives’ goals and objectives. There is no single solution that works in each situation but JIC’s customized solutions will be based on each executives’ specific facts and circumstances.