Equity Compensation Advisor News: April 2013

Industry information and ideas to help financial advisors grow their practices by engaging individuals with equity compensation, managing their holdings and helping them to make prudent diversification decisions regarding their employee stock options and company shares. 40 Hot Corporate Prospects:  In their March 2013 Equity Compensation Report, the NCEO (National Center for Employee Ownership) identified 40 of the 900 largest public companies in the United States that provide broad-based stock options to employees.  If you are seeking new clients with employee stock options this is a great prospect list because it...

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Employers Increasing Discounts in Employee Stock Purchase Plans

Results of a new survey reflect how  improving economic conditions and a strengthening job market are prompting many  U.S. companies to enhance their employee stock purchase plans in an effort to improve  their benefits package. According to Fidelity Investments, more  than half of the companies surveyed (51%) indicated they intend to modify their  employee stock purchase plan at some point in the next two to three years, with  nearly one-third (31%) of employers either introducing or increasing the  employee discount...

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Companies Now Using a Mix of Long-Term Incentive Awards

Excerpts from the Ayco Compensation & Benefits Digest - April 12, 2013 Long-term incentive (LTI) awards typically account for a significant portion of the compensation received by corporate executives. Within the universe of LTI awards there are four main types: 1) stock options and stock appreciation rights (SARs); 2) restricted stock and restricted stock units (RSUs); 3) performance shares and performance units; and 4) market stock units. More than a decade ago, almost all large U.S. companies used stock options...

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Managing Your Restricted Stock Units

The recent article on Restricted Stock Units from the PayScale blog by Dan Walter provides background for stock plan sponsors on this form of equity compensation. It does a good job of describing the three limitations regarding receiving RSUs, but it stops short of providing any guidance for recipients on what to do with them. In summary, here are the downsides to RSUs that were mentioned in the article: The onerous processes required by IRC 409A have resulted in many...

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Advice for Executives Regarding Their Stock Options

by Phil DeMuth, Ph.D. An excerpt from The Affluent Investor - Financial Advice to Grow and Protect Your Wealth Today's corporate executives should spend at least as much care considering how to manage his stock options and restricted stock as he does managing his airline miles. This is a daunting task, because the interwoven tax and investment issues are baffling. For this reason, most employees use their options as play money and execute them either when they want cash to...

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40 Hot Prospects for Financial Advisors Who Manage Employee Stock Options

In their March 2013 Equity Compensation Report, the NCEO (National Center for Employee Ownership) identified 40 of the 900 largest public companies in the United States that provide broad-based stock options to employees. These companies include Apple, Cisco, Deere, Merck and Southwest Airlines. Click the following link for the names of all 40 companies. NCEO List of Companies with Broad Employee Stock Option Plans For financial advisors seeking clients with employee stock options this is a great prospect list because...

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Creating an Executive Services Pilot Plan

No matter how big or small your advisory firm is, if you want to develop a successful executive services offering it is prudent to start with a pilot project and a documented plan.  Here is a list of items that should be included in the plan.  Keep in mind that project stakeholders need to be involved in the development of the pilot plan and once completed, a project manager will be needed to implement it. Pilot Objectives and Procedures to Capture the Results: New clients? Assets under management? Number...

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