How Do You Spell "Vested RSU"?

by Sheri Iannetta Cupo, CFP, Partner and Wealth Manager at SageBroadview Especially when it comes to company stock plans, acronyms abound. Someday, I’m going to invent a secret decoder ring that translates each one into something approaching English. I’ll make a bazillion dollars and retire. In the meantime, let’s decode one important acronym that can sometimes spell confusion for busy professionals: Restricted Stock Units (RSUs). RSUs, Decoded Many corporate executives and valued employees may be receiving vested RSUs around this...

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Five Trends in Restricted Stock/Units

Barbara Baksa, Executive Director of the National Association of Stock Plan Professionals (NASPP) identifies five trends in the usage of restricted stock and units, from the 2016 Domestic Stock Plan Design Survey, co-sponsored by the NASPP and Deloitte Consulting. Trend #1: Use of time-based stock grants and awards is still on the rise. The percentage of companies issuing stock grants and awards increased by 10 percent since our last survey (up from 81 percent in our 2013 survey to 89...

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StockOpter.com Advisor Newsletter: April 2017

If you haven’t already noticed, we wanted to make you aware of several recent enhancements to StockOpter.com. These upgrades were designed to increase your productivity and help you to provide better stock compensation diversification guidance.  Here’s a brief summary of the enhancements and some related resources and information. Share Diversification Analysis: We have developed a methodology for reducing the risk of concentrated company stock positions by helping clients to establish an annual diversification strategy their vesting restricted/performance shares. This new...

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Ways of Generating More Business from Corporate Executives

Financial advisors who currently use StockOpter.com to generate revenue by attracting corporate executives and helping them to diversify their company stock and options can do the following things to drive additional business. One: Keep track of how much revenue you generate from executives. StockOpter.com users report they gather on average $200,000 in assets under management per client per year and can charge between $500 and $1,500 annually for equity compensation planning assistance. Knowing how much business you are deriving from...

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Understanding the StockOpter Share Diversification Analysis

As restricted stock and/or performance grants vest over time, recipients will have a higher concentration in their company stock. Concentrated company stock positions are inherently risky. Even the best of companies can suffer depressed stock prices due to external factors often beyond the control of management. Consequently, it is prudent to periodically diversify and reinvest some of these holdings in a balanced portfolio.   Determining when and how much to diversify can be facilitated by simulating the future consequence of different levels...

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Facilitating Owned and Restricted Share Diversification Decisions

Advisors and their clients with sizable holdings of company stock (owned and restricted shares) will both benefit from systematic diversification of these positions. For the client it means reduced risk and peace of mind, and for the advisor it means additional assets under management. Most executives will agree that concentrated company stock positions are risky and diversification is financially prudent, but taking timely action is often a different matter. There are a number of factors that may inhibit clients from...

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Top Ten Trends in Stock Plan Design

Barbara Baksa, Executive Director of the National Association of Stock Plan Professionals (NASPP), summarizes the findings of the 2016 Domestic Stock Plan Design Survey in her blog post.  This survey co-sponsored with Deloitte Consulting LLP contains data from more than 400 companies on stock plan design and granting practices of restricted stock/RSUs, performance share/units, and stock options/SARs. Full Value Awards Still Rising. This survey saw yet another increase in the usage of full value awards at all employee levels. Overall, companies granting time-based restricted stock or...

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Equity Compensation Advisor News: December 2017

Here's the latest news, tips and information for financial advisors that help clients with the diversification of their company stock and options. Are You Using Social Media Effectively to Prospect Online: In the past, advisors relied heavily on cold calls, door-knocking and referrals to meet new clients. While these are all still valuable prospecting tools, today’s advisors have the ability to reach out and connect with thousands of potential clients at the touch of a button using social media. By implementing...

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5 Things Firms Need to Know About Implementing Executive Services Programs

For over 17 years, Net Worth Strategies has been helping financial advisory firms of all sizes to develop programs to generate business by assisting executives with their company stock and options. Here are the top 5 things we’ve learned regarding successful executive services programs.... 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. Providing stock...

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5 Ways for Advisors to Reach New Clients in 2017

In his article in Financial Planning, Craig Faulkner describes 5 trending marketing strategies advisors should consider using to reach new clients next year: Share your unique narrative of how and why you got into the business.  This is more compelling than listing your degrees and work history because it tells a better story.  Use content, videos and images on your website to show visitors who you are. Use anonymous client case studies to describe how you have helped them solve a problem or...

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