Equity Compensation Advisor News: January 2015

Here's the latest news, tips and information for financial advisors with clients or prospects that have company stock and options. Strategic Diversification of Employer Stock: The following case study, illustrated using StockOpter Pro, describes a four step process that enables financial advisors to secure immediate and recurring company stock diversification/reinvestment transactions.  Right now get StockOpter Pro at a low introductory price.  An introductory license of SO/Pro is good until May 1, 2015 and allows users to run an unlimited number of goal based diversification strategies for...

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How to Find Companies that Grant Equity Compensation

PHOTO: Kevin Hutchinson / Flickr / Creative Commons License Financial advisors regularly ask us for suggestions on where to find companies in their area that grant equity compensation to employees. Unfortunately, finding local companies that offer employee stock options or restricted shares isn’t easy. There isn’t a “list” that can be acquired or bought and here is why…… Major financial advisory firms (i.e. Merrill Lynch, E*Trade, etc.) have invested hundreds of millions in Stock Plan Administration platforms to get access to...

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Insider Trading and the Use of 10b5-1 Plans

By Richard Friedman, The Ayco Company, L.P. From the Ayco Compensation and Benefits Digest, January 2015 Formal charges, allegations or even hints of insider trading violations create significant reputational risks to individuals and their employers. While the Securities and Exchange Commission (SEC) continues to bring a significant number of enforcement actions for insider trading, a recent federal court decision (discussed below) could jeopardize the successful prosecution of those who receive and benefit from nonpublic information concerning a public company. This...

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Are You Valuing Your Employee Stock Options Correctly?

IMAGE: Marco Rubino / 123rf.com By John Lau CFP®, CPA, RIA, M.S. (Tax) Employee stock options (ESOs) are a form of compensation corporations give to executives and senior employees. Unlike salary or bonuses, the value of a stock option increases with the price of the company’s stock. The idea is so that the stock option would serve as a performance incentive for the employees. Employee stock options can be worth tens or hundreds of thousands of dollars—or more. Unfortunately, most option...

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