Stock option planning and restricted stock management

Receiving employer stock options can complicate your financial picture, particularly if your choices result in unexpected adverse tax consequences. Stock option planning strategies can integrate your option benefits into an overall financial plan while helping to increase tax efficiency.

Our goal is to help you derive the greatest value from your company compensation. To this end, we will determine the opportune time to exercise stock options, the tax implications of such actions, and how your stock options and other employer benefits fit into the big picture together with your retirement and estate planning.

Restricted stock can be acquired in many ways, including corporate mergers or acquisitions, stock splits, dividends, private placements and more. One of the most common restrictions requires a vesting period or specific goal to be reached before the stock can be sold.

Federal securities laws strictly govern transactions involving your restricted stock. Rule 144 is an SEC regulation that dictates the conditions when restricted, unregistered and controlled securities can be sold or resold. Section 16 is a SEC rule that describes reporting rules directors, officers and principal shareholders must follow.

However, if you qualify, you can sell all or a portion under certain SEC rules. The complex conditions require special care to ensure that stock sales are in compliance with the law. We can help you determine if you have met the restrictions and, if so, file paperwork and place a sell order at your request.