Helping corporate executives optimize their equity compensation

Equity compensation is traditionally the largest creator of wealth for corporate executives. We are well-versed in helping executives derive the most tax-efficient benefit from their well-earned perks.

We help with many different executive transactions, including stock option planning, cashless stock option exercises, rule 144 executions, 10b5-1 sales plans, and hedging and monetization for concentrated equity positions. In addition, we can assist with corporate solutions such as share repurchase programs, corporate cash management, executive benefit platforms, and retirement programs.

We work closely with The Executive Compensation Services team at Raymond James, professionals with extensive experience in working exclusively with public companies and their employees on important matters such as stock options and 10b5-1 plans.

Concentrated equity risk

One risk of acquiring a significant amount of company stock – whether through stock awards, stock options, restricted stock grants, restricted stock units and or performance shares – is the overweight in your portfolio that could expose you to a decline in value. If you’re in this situation, there are many options available beyond simply selling the stock. Although mitigating the risk of a concentrated equity position can be complicated, we can provide a variety of strategies that can hedge, monetize, diversify or transfer the position while managing the tax implications.

Insider trading regulations

Another complex challenge affecting public company executives are the regulations surrounding trades in employer stock. Rule 144, Section 16, Rule 10b-5 and company trading policies must all be considered prior to executing trades for executives.

SEE OUR WEBPAGE ON 10b5-1 PLANS

Low-cost-basis stock distributions

There can be significant tax implications associated with selling a large amount of company stock or taking a profit on a stock that has increased greatly in value. We offer strategies to help mitigate the tax impact of such transactions.

One area we devote particular attention to is net unrealized appreciation. The NUA is important when distributing highly appreciated company stock from a tax-deferred employer-sponsored retirement plan, such as a 401(k). Upon the sale of company stock accumulated over a career, the NUA will be subject to the capital gains tax, which may be dramatically lower than the current income tax

Tax-efficient charitable giving strategies

As part of our tax mitigation strategy, we are also well-versed in helping executives take advantage of matching company dollars for charitable donations.

SEE OUR WEBPAGE ON CHARITABLE SOLUTIONS

Count on us your trusted financial guides

We are here to help create your plan, manage your investments, and mitigate your tax burden, while addressing key issues such as estate planning, generational wealth transfer and your philanthropic efforts.

Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.