Your equity compensation and liquidity event come with intersecting decisions. How you approach them can define your long-term financial trajectory.
You’ve worked hard. Now it’s time to think about how your equity can work for you. We’re here to help guide you with advice on equity compensation planning, tax-aware diversification, pre-IPO strategies and comprehensive wealth management.
What you need to know about your corporate equity compensation
This event is not a payday; it’s a wealth event. It affects your tax, investments, estate planning, insurance, banking and philanthropy decisions simultaneously. When a company goes public, employee equity compensation becomes more liquid, but not necessarily all at once, and not without significant tax and investment complexity.
Equity types: stock options, RSUs and restricted stock
Whether it is a type of stock option or restricted stock, different types of equity have different tax treatment, exercise or vesting rules and timing considerations that affect your strategy.
Why timing matters for your equity event
The equity compensation decisions you make in the months surrounding a liquidity event, from when you exercise options to how you plan for concentrated stock positions, can impact your tax liability and long-term wealth.
What we coordinate for you across your equity event
Equity Compensation FAQs
Can I just sell my equity (or wait) and figure it out later?
Timing decisions in the first 12 months can cost you in taxes and missed planning opportunities.
Will my CPA (certified public accountant) handle the tax part?
Your CPA should definitely be involved to provide your tax advice. However, your CPA may not have the full financial picture and may not offer equity-specific scenario modeling, coordinate with an investment strategy, or address estate and insurance decisions that intersect with your equity compensation event.
Is my equity event mainly an investment decision?
It could affect tax, estate, insurance, banking, charitable decisions and investment strategy.
When should I start planning my equity compensation strategy?
The best time to start planning your equity compensation strategy is before your liquidity event. Acting early gives you more options for tax planning, diversification and estate considerations, and helps you avoid costly, time-sensitive mistakes.
Important Information:
Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.
This information is for educational and illustrative purposes only and should not be interpreted as specific investment advice. Investors should make investment decisions based on their unique investment objectives and financial situation.
Diversification does not guarantee a profit or protect against loss in declining markets.
Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.
Investors should understand the risks involved of owning investments. The value of investments fluctuates and investors can lose some or all of their principal.