Legislative Update: Empowering Employees Through Stock Ownership Act Resurfaces In The Senate

This blog post is provided by myStockOptions.com, a leading source of educational content on all types of stock compensation. While stock options continue to be popular at startups and other pre-IPO companies, employees cannot sell stock at exercise to pay the exercise price and the taxes on the income. Moreover, under current law those taxes cannot be delayed. Last year, an encouraging legislative proposal was introduced in the House of Representatives to address this issue. Approved by a House vote...

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Six Trends in Performance Awards

Barbara Baksa, Executive Director of the National Association of Stock Plan Professionals (NASPP) identifies six trends in the usage of performance awards, from the 2016 Domestic Stock Plan Design Survey, co-sponsored by the NASPP and Deloitte Consulting. Trend #1: Performance awards are on the rise for executives. Over the past four survey cycles, we’ve seen a more than 100% increase in the use of performance awards at the NEO and senior executive levels. For NEOs, usage has risen from 37%...

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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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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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10 Ways Stock Compensation Can Make You Happier

From being solely a subject for philosophers and poets, the pursuit of happiness has become a pragmatic, widely acknowledged arena of interest for companies and their employees. Stock compensation, if fully appreciated and understood, can improve happiness. Excerpted from an article by Bruce Brumberg, the editor-in-chief of myStockOptions.com, the 10 points summarized below show how. You can also read his full article at that website. Wealth creation. When your company's stock price increases—whether you have grants of stock options or...

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Optimizing Stock-Based Compensation for Retirement

By Charles "Chuck" Steege of SFG Wealth Planning Services, Inc. This is a summary of a detailed white paper entitled: The Great Drawdown: How to Optimize Stock-Based Compensation for Planned or Unplanned Retirement. Retirement is the long-awaited culminating event of a corporate career. The closer an executive rises to the top, the harder it is to stay there. At some point, whether the timing is right, health and wellness issues intervene or there is something more compelling to do than continuing...

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Five Things for Employees to Review by Year‐End

by Richard Friedman, The Ayco Company, L.P. Fall is open enrollment season at most companies and making an appropriate medical coverage election may be the most important year‐end decision for most employees. Yet, on average, employees spend less than an hour reviewing their employer’s enrollment material. There is now evidence that how a company communicates this information can greatly influence the actions taken by employees. But there are several other year‐end action items that individuals also should review. Getting into...

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Tax Tips for Employee Stock Purchase Plans

By Geoff Zimmerman, Senior Advisor and Chief Compliance Officer, Mosaic Financial Partners Tax rules for the sale of employee stock purchase plan (ESPP) shares can be quite complex for plans that allow participants to purchase stock at a discount. The best way to explain the rules of the road for dealing with ESPP stock purchases and sales is through examples, to help ESPP participants better understand the nuances of these plans. Our fictional sample ESPP participant is Jim Brook of Orange, Inc. We'll see...

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10 Planning Tips for ESPP Participants

The following FAQ with 10 ESPP planning tips is from the ESPP content courtesy of myStockOptions.com. FAQ: What are the 10 most important financial-planning rules for employee stock purchase plans? Before you participate in your company's employee stock purchase plan (ESPP), understand the following essential points for financial planning with ESPPs. 1. Set goals. Understand the value of your ESPP participation and how it fits into your life. What exactly do you want to do with the proceeds from the...

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