8-steps for managing your equity compensation

IMAGE: Ssviluppo / 123rf.com By Cody Romano For employees who receive stock-based pay, the task of managing Restricted Stock Units (RSUs) or options can be fraught with emotion. It’s natural to have strong feelings about the business where you spend much of your time and speculate about its future performance. As with many issues in personal finance, there’s no “right” way to invest in your company’s stock because the answer depends on your situation. But there are healthy and not-so-healthy...

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Steps for Deriving More Value from Equity Awards

IMAGE: Convisum / 123rf.com Companies grant more than $110 billion in equity awards every year, and many have concerns about how much employees value these awards.  UBS research across industries and service providers found that two out of three participants do not place significant value on the equity awards they receive.  However, this misperception can be corrected. The third edition of the UBS Participant Voice reveals three steps participants can take to derive more value from their equity awards.  In fact,...

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Employee Stock Options Today

By Richard Friedman from the Ayco Digest: June 17, 2016 Stock options have been part of compensation pay in Corporate America for nearly a century. While they remain a relatively common long-term incentive award, they no longer are the primary such award for executives at most U.S. public companies. Yet, options continue to be the most utilized compensation mechanisms at pre-IPO start-up companies where they are a means of sharing future growth of the company with most or even all...

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Helping your employees understand their equity compensation

By Joe Vietri Although equity is an increasingly common form of total workplace compensation, many employees do not realize its full value. In fact, in a recent Schwab survey of 1,000 residents in the San Francisco Bay Area, one third said they receive equity as part of their overall workplace compensation. Yet fewer than half believe it will make them wealthy, and nearly 70 percent say they would cash out either some or all of their equity compensation as soon...

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Here are the Five Things we Think You Should Know About Your Equity Compensation

John Barringer-CFP, Founder and Managing Partner at WorkWealthy.com Your Forfeit Value – The potential value of the compensation you’d leave behind if you quit or changed jobs. This includes the time value of your unvested and out of the money grants which, presumably, you’d want to replace, if you could, at your new job. We employ a tool that continuously monitors this for you; Your Upside and Downside Leverage – Stock options involve leverage because of the way they are...

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