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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More Employees Rank Company Stock as Their Top Benefit

BOSTON — For many people, their most important workplace benefit is a 401(k) or health insurance, but for a growing number of employees, a company stock plan is their top benefit. According to research1 from Fidelity Investments®, 16 percent of employees say company stock is their most important benefit, up from 10 percent in 2014. For employers, company stock plans can help attract and retain top talent. Almost two-thirds of employees (63 percent) said that participating in their company stock...

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Supercharging Employee Stock Option Programs

IMAGE: rawpixel / 123rf.com Think there's no point in explaining the time value of employee stock options to employees? Think again! A panel discussion from the NASPP National Conference presented academic research showing that communicating the time value inherent in options can significantly change how employees view their stock options grants. This presentation also offers strategies for explaining time value and provides a company case study that dispels the myth that time value information is too much trouble to provide and too...

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Help, My Company Is Being Sold!

IMAGE: Papan Saenkutrueang / 123rf.com If you're holding restricted stock units, it's time to talk to a professional. This article was originally published on U.S. News by Kristin McFarland, Wealth Advisor at Darrow Wealth Management. Permission to post was granted by Kristin. Whether you're working for a large public company or a newly established startup, there's a good chance you're receiving some form of equity-based compensation. In recent years, restricted stock units have become an increasingly common form of equity compensation,...

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8-steps for managing your equity compensation

IMAGE: Ssviluppo / 123rf.com By Cody Romano For employees who receive stock-based pay, the task of managing Restricted Stock Units (RSUs) or options can be fraught with emotion. It’s natural to have strong feelings about the business where you spend much of your time and speculate about its future performance. As with many issues in personal finance, there’s no “right” way to invest in your company’s stock because the answer depends on your situation. But there are healthy and not-so-healthy...

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Steps for Deriving More Value from Equity Awards

IMAGE: Convisum / 123rf.com Companies grant more than $110 billion in equity awards every year, and many have concerns about how much employees value these awards.  UBS research across industries and service providers found that two out of three participants do not place significant value on the equity awards they receive.  However, this misperception can be corrected. The third edition of the UBS Participant Voice reveals three steps participants can take to derive more value from their equity awards.  In fact,...

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Helping your employees understand their equity compensation

By Joe Vietri Although equity is an increasingly common form of total workplace compensation, many employees do not realize its full value. In fact, in a recent Schwab survey of 1,000 residents in the San Francisco Bay Area, one third said they receive equity as part of their overall workplace compensation. Yet fewer than half believe it will make them wealthy, and nearly 70 percent say they would cash out either some or all of their equity compensation as soon...

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Here are the Five Things we Think You Should Know About Your Equity Compensation

John Barringer-CFP, Founder and Managing Partner at WorkWealthy.com Your Forfeit Value – The potential value of the compensation you’d leave behind if you quit or changed jobs. This includes the time value of your unvested and out of the money grants which, presumably, you’d want to replace, if you could, at your new job. We employ a tool that continuously monitors this for you; Your Upside and Downside Leverage – Stock options involve leverage because of the way they are...

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