Stock-Based Compensation Planning
We help you optimize your financial plan
Compensation packages for corporate executives tend to be extremely complex. It’s challenging to be completely knowledgeable about your compensation and benefit plans, yet these plans are critically important to your personal wealth plan. You can’t focus on leading your business well when you’re worried about your own financial future.
At Moneta, we’ll help you maximize your complex compensation package and corporate benefits so you can have the time and peace of mind you need to lead with confidence as you navigate life’s path.
How restricted stock plans fit into a financial plan
Restricted stock plans involve the transfer of corporate stock to compensate executives with an element restriction or limitation that can come through various mechanisms.
Time-based restriction with a vesting schedule is the most common limitation. This allows the executive to achieve tax deferral on the compensation received.
At the time of vesting, you will realize income equal to the difference between the stock’s fair market value and the price at original issuance. This income is subject to ordinary income tax as well as Social Security and Medicare taxes.
Being vested means the shares are your own without any strings attached. That means you can move them to another institution, cash them out, save them, or give them as a gift.
Restricted Stock FAQs
Not all RSU plans are the same and they often come with layers of complexity.
Tax Events
Risk
Cashing Out
Holding Vested Stock
Seek financial planning guidance for executive compensation in Denver, Colorado
Time is your most precious and scarce resource as a corporate executive. So many important areas of life compete for your time. You probably spend so much time leading your business and team at work, engaging your family at home, and serving your local community that you don’t have enough time left to optimally manage your wealth and complex financial situation.
There is no one-size fits all solution when it comes to navigating RSUs as part of a broader financial plan. We will work with you to learn the nuances of your specific compensation structure and then strategically optimize your financial plan to target your personal long-term financial goals while also taking care of your short-term needs.
Contact the Hadary Team at Moneta to learn more about financial planning for corporate executives and our other services.
Schedule an Appointment
Contact us to learn more about our stock-based compensation planning services.
