Equity Compensation Advisor News: March 2015

IMAGE: cooldesign / 123rf.com Here's the latest news, tips & information for financial advisors that have clients or prospects that receive equity compensation. Advisor Programs Improve Stock Plan Perceptions:  This article summarizes recent equity compensation participant surveys & research and describes how financial advisor guidance programs can significantly decrease stock plan perception and education gaps.  Advisor based assistance programs enable companies to maximize their investments in equity compensation by assisting plan participants to fully understand, appreciate and get the most out of their company stock...

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Encouraging Executives to Diversify Their Options

Encouraging executives to diversify their employee stock options isn’t easy, but it’s critical for reducing risk. The following case illustrates an effective approach to this challenge. The client is a 50-year-old executive at a medical-devices company. He planned on using his company stock options valued at $3.5 million to support him and his wife in retirement, and to help pay for their children's college educations. His advisor, Lynn Chen-Zhang, wanted him to begin exercising his options, selling the underlying stock...

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Tax-Return Guidance For Reporting Stock Sales

IMAGE: Debbie Case / 123rf.com For your clients that receive stock compensation, every tax-return-filing season raises worries about errors that can lead to the overpayment of tax, IRS penalties, or even an IRS audit. We asked Bruce Brumberg, Editor-in-Chief & Co-Founder of myStockOptions.com for his insights and guidance. The site has a Tax Center that is a respected and much-visited resource this time of year. The blog below is from Bruce. This tax-return season presents more than the usual potential...

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