For over 19 years, Net Worth Strategies has been helping financial advisory firms of all sizes to develop programs to generate business by assisting corporate executives with their company stock and options. Here are the top 5 things we’ve learned regarding successful executive services programs....

  1. Generating revenue via executive services is a function of volume and time. Systematically assisting executives to manage and diversify their equity compensation holdings over multiple years is the key to a highly successful program.
  2. Providing stock plan administration services is a good way to identify prospects, but it needs to be coupled with an executive services program to convert prospects into profitable clients by building long term relationships.
  3. The transaction revenue generated from selling company shares is small compared to the revenue from new assets under management by getting clients to diversify and reinvest.
  4. Lower level executives (e.g. Directors and Vice Presidents) represent the biggest opportunity because: 1) they are likely to become senior executives in the future and receive larger grants, 2) the competition for their business is minimal and 3) they are generally very receptive to equity compensation guidance.
  5. Producing a tactical equity compensation risk analysis is more efficient and effective at securing assets under management than creating a strategic financial plan. This is because an equity compensation analysis doesn't take long to create or present and it is likely to identify positions that require immediate diversification to reduce risk.

Bill Dillhoefer is the CEO of Net Worth Strategies, Inc. a service firm specializing in professional equity compensation guidance tools. Bill has 19 years of experience in the field of equity compensation risk analysis and tax planning.  Bill has spoken at the NASPP conference and to numerous advisor groups. Connect with him on LinkedIn or follow him @StockOpter.

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