Understanding Employee Equity Compensation

Don’t leave chips on the table

A mini e-Book from Zermatt Wealth Partners

Your employee equity compensation can be a vital component to your long-term wealth creation but often requires detailed analysis, time, and attention. A specialized wealth management team can work with you to unlock the most value possible from your employee equity compensation on an after-tax basis.

This mini e-book covers the following topics:

  • An overview of the types of employee equity compensation, including Restricted Stock Units, Stock Options and Employee Equity Participation Programs.
  • Strategy and tax overview.
  • Ideas for properly viewing and managing concentrated stock positions, including the tax strategies around highly appreciated stock positions.
  • Navigating black out windows.

Some Excerpts from the mini book:

“Employee Equity Compensation comes in a variety of formats and often requires a game plan, diligence, and timeliness to obtain optimal value.”

“…various forms of employee equity compensation can have varying tax implications and require specialized analysis and a nuanced approach in terms of being prepared for tax liabilities and optimizing the after-tax value of employee equity compensation securities.”

“Unlike Restricted Stock units, all forms of Stock Options require action on the part of employees to realize their value.”

“We get it: A) You don’t enjoy paying taxes, and B) You think your company is going to the moon compared to the stock market, so how can a wealth manager help???”

“The data indicates that single name stock exposure comes with significant risks when compared to owning a diversified portfolio of stocks. These risks often cause significant damage to an individual’s wealth objectives.”

“Don’t let blackout windows and trading restrictions derail your long-term financial goals. Work with a trusted wealth advisor to create an intelligent and thoughtful, systematic, rules-based program to sell your company’s shares to create adequate diversification per your unique financial situation and wealth accumulation objectives.”

To access the full mini e-book please fill out the following fields:

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Important Disclaimer: PLEASE NOTE, we are NOT CPAs OR LICENSED TO PROVIDE TAX ADVICE. This information is intended for educational purposes only. Please seek qualified professional tax advice when making any tax related decisions regarding your Employee Equity Compensation. Please contact us if you would like a referral to a trusted tax professional not related to Zermatt Wealth Partners.

Disclosures: This report was prepared by Zermatt Wealth Partners, a federally registered investment adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Zermatt Wealth Partners, Form ADV Part 2A & 2B can be obtained by written request directly to: 3170 Fourth Ave., 3rd Floor, San Diego, CA 92103. Neither the information nor any opinion expressed it so be construed as solicitation to buy or sell a security of personalized investment, tax, or legal advice.
This is prepared for informational purposes only. It does not address specific investment objectives, or the financial situation and the particular needs of any person who may receive this report.

The information herein was obtained from various sources. Zermatt Wealth Partners does not guarantee the accuracy or completeness of information provided by third parties. The information in this report is given as of the date indicated and believed to be reliable. Zermatt Wealth Partners assumes no obligation to update this information, or to advise on further developments relating to it.