Equity Compensation Planning

Equity Compensation Planning

Equity compensation planning is a strategic approach to managing and optimizing the equity-based compensation that individuals receive as part of their employment package. Equity compensation can include stock options, restricted stock units (RSUs), and other forms of equity-based incentives offered by companies to attract and retain talent.

Equity Compensation Plans | Oakwell Private Wealth Management

Key aspects of equity compensation planning include:

  1. Understanding Equity Awards: This involves understanding the types of equity awards you have received, such as stock options or RSUs, and the terms and conditions associated with each award.
  2. Tax Planning: Equity compensation is subject to complex tax rules, and effective tax planning can help minimize the tax impact of exercising stock options or receiving vested RSUs.
  3. Timing of Exercise: Deciding when to exercise stock options or sell vested RSUs is an important part of equity compensation planning and involves considerations such as stock price performance and personal financial goals.
  4. Diversification: Managing the concentration risk of holding a large portion of your wealth in company stock by diversifying your investment portfolio.

Equity compensation planning is important for maximizing the value of your equity awards and integrating them into your overall financial plan. Working with Oakwell PWM on your equity compensation planning can help you navigate the complexities of equity compensation allowing you to make informed decisions that align with your financial goals.