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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StockOpter Helps Explain Equity Compensation

In a review in the Investment News Tech Directory, equity compensation expert John Barringer states..... The most difficult idea to get employees of public companies who receive equity compensation to understand is the concept of time value.  StockOpter's "Insight Ratio" simplifies this and turns it into a disciplined decision-making criteria. Two essential functions make StockOpter.com the ideal tool for advising corporate executives: The "Monitor" feature adds needed structure to what would otherwise be a risky, market timing approach to diversifying concentrated company stock...

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Sample StockOpter Equity Compensation Analysis Reports

StockOpter reports provide stock plan recipients with the information they need to know to make timely and informed decisions regarding their equity compensation grants. These "template based" documents are highly customizable and contain information that is NOT provided via stock plan administation platforms. StockOpter reports includes concepts such as: time value, leverage, forfeit value, concentration, goal attainment, after tax value and a metric that helps determine when to exercise ones options (Insight Ratio). Here are samples of the most common...

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Equity Compensation Advisor Info: December 2015

IMAGE: Ali Morshedlou / Unsplash Five Things For Employees to Review Before Year End:  There are certain employee benefit related actions that should be reviewed and possibly changed periodically, if not annually. Richard Friedman from the Ayco Company points out his “top five” year end reminders, which incorporate mistakes he has seen all levels of employees make – from the recently hired employee to long-term senior executives. Year End Equity Compensation Planning Tips:  Start with a framework for having a year-end discussion with...

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How performance shares are treated after a death

By Charles Steege, SFG Wealth Planning Forty-eight-year-old Christopher was senior vice president of security at a real estate search company when he died unexpectedly in a tragic car accident. Now his wife, Denise, 48, needs help to understand how her late husband’s performance share units (PSUs) will be handled. While Christopher was working, Denise took time off to care for their two kids. She also maintained her CPA license and worked on annual tax returns for family members and friends....

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To exercise or not to exercise your employee stock options?

by Michael Ruzhansky, CFP® One of the more frequent questions I get asked by clients and sometimes by their advisors is when is the best time to exercise employee stock options and sell the stock. As the stock market averages are hovering around all-time highs, I can not shake the feeling of dejavu. I have seen this movie before and it doesn’t end well. So I decided to publish a series of posts dealing with equity compensation planning. If you...

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5 Possible Scenarios That Can Impact Equity Compensation

From the 2001 dot-com bubble collapse to the 2008 economic downturn and recent changes to taxation law, we have all learned that when it comes to planning for the future, we must forecast for all eventualities. Negotiating your equity compensation is no exception: it is important to play the long game and be aware of the factors that will affect your package – both its value and the tax implications – now and into the future. While no-one has a...

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Know When It's Time To Exercise Stock Options Or Just Sit Tight

This is a good article that explains how this firm uses the "Insight Ratio" (Time Value / Black Scholes) to help their clients with employee stock options to make prudent exercise decisions.   I like the "Core Capital" concept, but think that the level of concentration in company stock and options should also be factored in.  Bill D. by Kathleen M. Fisher and Richard  L.N. Weaver from The AllianceBernstein Blog on Investing Lots of stock options have become valuable in the recent stock market...

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StockOpter.com User Testimonials

"Great website!  This would be very valuable to the thousands of people who have stock options and have no idea what to do about exercising them."  Merck & Co. Recipient "Two essential functions make StockOpter.com the ideal tool for advising corporate executives: 1) the "Monitoring" feature adds needed structure to what would otherwise be a risky market timing approach to diversifying concentrated company stock positions and 2) the opportunity for an executive to see his or her potential "Forfeit Value"...

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Conducting Equity Compensation Participant Workshops

The 2011 Domestic Stock Plan Administration Survey co-sponsored by the NASPP (National Association of Stock Plan Professionals) and Deloitte Consulting identified 2 statistics indicating that the majority of issuing companies could do more to assist employees to understand their equity compensation: 76% of surveyed companies don’t provide plan participants with information to assist them on an ongoing basis. 55% don’t provide employee presentations on stock compensation. To address this need, here is a set of slides that can be used...

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