This monthly news brief contains ideas and information to help financial advisors to grow their practices by engaging individuals with equity compensation and providing them with profitable advice.

  • Charitable Giving Strategies for Equity Compensation: Employees with stock based compensation can have large yearly swings in income.  This can be caused by the vesting of restricted or performance shares or by exercising stock options.  These sometimes uncontrollable events can push clients into higher tax brackets.  In these situations, deploying charitable giving techniques can be advantageous.  This article explains the process and benefits of utilizing Charitable Giving Strategies for Equity Compensation.
  • Equity Compensation Advisor Interview:  This is another installment in a series of articles describing successful equity compensation advisors.  David Strege, CFP, CFA explains his approach to attracting and serving executives with equity compensation.   
  • 4 Questions to Ask Individuals with Equity Compensation:  Employees with equity compensation represent a great opportunity for advisors to generate new and ongoing business.  This article provides a structured approach for engaging executives with stock based compensation.
  • WSJ Article: “Playing Your Employee Stock Options”:  This recent article in the Wall Street Journal provides some practical information to individuals with employee stock options.  It aligns well with the concepts embodied in  It advocates making informed decisions for “Spreading the Risk” by diversifying concentrated positions and “Maximizing Option” values by calculating the percentage of “time value” to “intrinsic value” (Insight Ratio).  It also introduces hedging strategies for “Protecting the Downside” which requires a general understanding of the Black Scholes method of valuing options.
  • To Include or Not Include Dividends:  We are often asked “why are my Insight Ratios negative?”  This StockOpter white paper explains the Black Scholes dividend effect and provides guidance on whether it makes sense to enter dividend assumptions into
  • Subscribe to the RSS Feed for the StockOpter University:  Keep up to date on equity compensation decision support news by getting StockOpter University updates delivered by email or via web-based news readers like “My Yahoo” when they are posted.

Please do not hesitate to reach out if we can be of any assistance.

Bill Dillhoefer
Net Worth Strategies, Inc.

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