The Do's and Don'ts for Engaging Executives with Equity Compensation

Financial advisors contact me regularly to ask for ideas on how to grow their practices by acquiring corporate executive clients.  Having been in the equity compensation guidance space for 20 years I've seen what works and what doesn't.  Here are some do's and don'ts for pursuing this market: Do have a few questions and an elevator pitch memorized for whenever you meet an executive that receives equity compensation (i.e. employee stock options and restricted stock/units).  Read this article on the Four Questions to Ask...

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4 Questions to Ask Clients with Equity Compensation

Employees with equity compensation represent a great opportunity for advisors to generate new and ongoing business.  This is because the market is largely under served and highly lucrative.  Of the approximately 8+ million employees who receive equity compensation awards, only a small percentage utilize professional assistance.  So when financial advisors cross paths with these prospects it's important to be prepared to seize the opportunity.  Here are 4 questions to ask after meeting someone who works for a company that provides equity compensation: "What type(s) of...

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Maximizing Restricted Stock Awards

Financial advisor and StockOpter user Megan Gorman in her Forbes article How A Restricted Stock Strategy Can Maximize Your Wealth has some great tips for restricted stock recipients. Megan explains "Restricted stock is simply shares issued to an employee that cannot be transferred to them until certain conditions have been met. These conditions can be time- or performance-based." However she continues, "while restricted stock creates great upside potential, if employees do not know how to manage the risks, they might...

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Trends in Private Company Stock Plans and How They Effect Advisors

According to a recent post by Barbra Baksa of the National Association of Stock Plan Professionals, a soon to be released NASPP’s survey on equity compensation at private companies found the following five trends: #1: Stock options are the equity vehicle of choice, with 74% of respondents granting them. #2: Private companies are committed to ISOs, with close to 60% of private companies that offer stock options granting them. #3: For most private companies, when deciding whom to grant to,...

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5 Things You Should Know About Your Employer Stock & Options

This infographic can be used to promote professional equity compensation guidance to clients and prospects that receive company stock and options. These five concepts are included in the StockOpter.com client deliverables.  They have proven to be very effective at engaging stock plan recipients and helping them to make timely, informed and profitable decisions. These concepts are not illustrated on stock plan participant portals or using general financial planning tools. Click on the image below to view and print this infographic....

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Performance Awards: 3 Truths... and a Lie

Recently, Fidelity Stock Plan Services and ClearBridge Compensation Group assessed the alignment between Performance Awards and a company’s performance. Accessing data and researching deep into company grant practices and Performance Award payouts, they specifically looked for factors which impacted the pay‑for‑performance relationship to help determine whether or not an ideal mix of equity vehicles exists. For this study, ClearBridge analyzed Performance Award Data collected from Fidelity Stock Plan Services for two hundred Fidelity clients with share-based Performance Awards that had...

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7 Steps for Actively Marketing to Equity Compensation Recipients

IMAGE: rawpixel.com / Unsplash In today’s competitive financial market, it takes a lot of effort for financial advisors to master the skills required to best serve the needs of their current clients, while continuing to improve their business by expanding the client roster. Tapping into niche markets such as equity compensation is an excellent way to not only add value-added services for existing clients but to also grow through the acquisition of corporate executive clients.  By implementing the following seven-step...

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Four Financial Ideas on Your Work Anniversary

By David C. Gratke, Principal at Gratke Wealth, LLC It’s another work anniversary and a good time to reflect on where you are in your career both professionally and financially. It couldn’t be a better time to also take stock of where your overall financial plan is currently, and whether or not you are on track to make work optional. Here are four smart financial ideas to consider on this work anniversary. 1) Rule of 1/3rds- Your work anniversary often...

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5 Things Firms Need to Know About Implementing Executive Services Programs

For over 19 years, Net Worth Strategies has been helping financial advisory firms of all sizes to develop programs to generate business by assisting corporate executives with their company stock and options. Here are the top 5 things we’ve learned regarding successful executive services programs.... Generating revenue via executive services is a function of volume and time. Systematically assisting executives to manage and diversify their equity compensation holdings over multiple years is the key to a highly successful program. Providing...

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Tax Tips for Employee Stock Purchase Plans

IMAGE: Anj Belcina on Unsplash By Geoff Zimmerman 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 how Jim's shares can...

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