Gaining Referrals in the Age of COVID

I recently came across a great article from the FPA regarding referrals. In her article Stay Top of Mind to Gain Referrals, Kristine McManus at the Commonwealth Financial Network states that referrals are the best way to attract high-quality prospects to your business. This is particularly true for the equity compensation niche because grant recipients have lots of co-workers that struggle with how to get the most out of this benefit.   Kristine explains that asking for referrals is tricky territory, given...

More

Employees Seek More Guidance on Equity Awards During Crisis

In 2013, the stock plan services team at UBS set out to better understand how employees engage with their equity awards. Through research conducted for the UBS Participant Voice, they identified trends that impact how much employees value their equity awards. It was discovered that employees do not value what they don’t understand, and that when they include equity awards in their overall financial plan, they appreciate the awards more. A few months before COVID-19 struck, UBS conducted the study...

More

Equity Compensation and Charitable Giving

Equity awards can provide a powerful planning opportunity for advisors to educate their clients on the benefits of donating vested company stock and options to maximize their charitable giving in a tax-smart way. The following information on equity compensation and charitable planning guidance is from Fidelity Charitable. Recorded Presentation on Equity Compensation Awards and Charitable Giving Equity Compensation and Charitable Opportunities Animated Video White Paper on Donating Restricted Stock and Option Awards to Charity

More

Executive Share Ownership Guidelines and Stock Retention Requirements 2020

This article is from the Ayco Compensation & Benefits Digest May 15, 2020 edition. Share ownership guidelines for executives continue to be a common feature at an overwhelming majority of U.S. public companies. The basic premise of mandating ownership of company stock is that the interests of senior management will more closely align with those of shareholders. We have been tracking the design of share ownership guidelines at Ayco corporate partners for the past 27 years. In the early 1990s,...

More

The Equity Compensation Planning Dilemma For Corporate Executives

Geoffrey M. Zimmerman, CFP® This article was first published at myStockOptions.com. It is kindly reprinted here with permission. Executives, as corporate insiders, face both planning concerns and potential landmines in their equity compensation. Your actions are highly visible, and you must perform a delicate balancing act to meet the needs, demands, and perceptions of the various constituencies interested in your company's stock. This article, which complements my other article on myStockOptions.com, looks at these concerns along with ways to manage...

More

10b5-1 Plan Best Practices for any Market Climate

Now that StockOpter.com provides 10b5-1 trading plan tracking, this recent NASPP blog post caught my eye. StockOpter's functionality tracks individual 10b5-1 plans for company insiders. This article explains four best practices issuer companies should consider to make their 10b5-1 programs more effective. by Jenifer Namazi Rule 10b5-1 trading plans are one of the tools that employees and board members of issuer companies have as a resource in creating an affirmative defense against insider trading. Although Rule 10b5-1 has been around...

More

COVID-19 and Equity Awards

The NASPP (National Association of Stock Plan Professionals) has published the results of a quick survey they conducted of how companies are responding to COVID-19 when it comes to their equity award programs. Here are the key findings detailed in the full report: Top Concerns: Restoring lost value to equity awards and adjusting performance targets to meet current expectations are the top two concerns for survey respondents. Reduced participation is the top concern participants have for ESPPs. Actions Under Consideration:...

More

Equity Comp. Advisor Marketing Video

  This video for engaging stock plan participants illustrates StockOpter's unique analytics. It's a video version of the "5 Things You Should Know About Your Employer Stock and Options" flyer. It can be used to promote a firm's equity compensation guidance capabilities. Net Worth Strategies collaborated with FA Client Machine to create this video as part of their Turnkey Video Library for financial advisors. These videos provide a fast, easy, and effective way for advisors to engage both clients and...

More

"Under Water" Doesn't Necessarily Mean "Drowned"

The following article was written by financial advisor John Olsen over 10 years ago.  At the time, the stock market like now had been hit with a substantial correction.  Company stock and option holdings had lost considerable value and many recipients believed the loss was permanent.  However, we all know the stock market recovered leading to the longest and biggest bull market on record.  So John's sage advice back then regarding providing equity compensation guidance bears repeating given the current...

More

Market Volatility and Employee Stock Option Values

  The stock market has been on a roller coaster the last few weeks, but in general the S&P 500 index is not far from its all time high. Consequently, most employee stock options granted in the last ten years are likely to still be significantly "In-the-Money" (current stock price above the grant price) as illustrated by the above chart. This chart shows the S&P 500 over the past decade. It can be used as a general representation of the...

More