Precision Management for Concentrated Wealth
For many high-achieving professionals, a significant portion of their net worth is tied to the success of a single company. While equity compensation is a powerful engine for wealth, it also brings "Black Diamond" complexity: concentration risk, restrictive lock-up periods, and significant tax implications.
Our Executive Equity Strategy is designed to help you navigate these variables with precision—turning paper wealth into a diversified, long-term foundation for your family’s future.
Specialized Expertise for Your Compensation
1. Restricted Stock Units (RSUs) & Performance Shares
We move beyond simple "vesting dates" to create a proactive strategy for your equity:
- The Tax-Efficient Vest: Coordinating your sales to manage the "tax spike" that occurs upon vesting.
- Concentration Guardrails: Establishing a disciplined "sell-to-diversify" schedule that reduces your exposure to a single stock while staying within corporate compliance.
2. Deferred Compensation Planning
Deferred comp is a powerful tool, but it requires a long-term view of your future tax brackets:
- Distribution Mapping: Architecting a multi-year payout strategy that aligns with your retirement "descent" to minimize your lifetime tax burden.
- The "Invisible" Risk: Analyzing the company’s credit risk and the specific rules of your plan to ensure your deferred wealth is preserved.
3. Concentrated Position Management
If you hold a significant block of company stock, "just selling" isn't always the best—or only—option:
- Strategic Hedging & Diversification: Exploring advanced methods to help protect your downside without triggering immediate, massive capital gains.
- Charitable Integration: Leveraging highly appreciated shares for your Donor-Advised Fund (DAF) to maximize the impact of your giving while optimizing your tax return.
Ready to Optimize Your Equity?
Let’s review your current compensation package and find the most direct line to your financial goals.
Investing involves risk and you may incur a profit or loss regardless of strategy selected, including asset allocation and diversification. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.
