Company stock and options and other noncash forms of compensation can build tremendous wealth—but making the most of this opportunity demands an active approach to managing these awards. The natural tendency to accumulate as much as possible can lead to an over-concentration of risk, or lost opportunities to maximize the value. However, with the right tools and thoughtful planning, you can make well-informed decisions on building and protecting wealth with stock-based compensation.
As an investment manager for many corporate executives and entrepreneurs, Bernstein has conducted extensive research regarding stock-based compensation and other executive wealth issues.
In this special report, we have compiled our key findings in this area, which include:
- How to evaluate and compare different types of stock-based compensation
- How to integrate stock-based compensation into lifetime wealth planning, using a “core and excess capital” framework
- A method for determining how much single-stock risk is appropriate in your portfolio, and, if you need to diversify, a framework for choosing which holdings to divest and which to keep
- How to manage stock options to get the most value from them
- Strategies for integrating single stock with estate and charitable planning
- Determining when and how to use non-qualified deferred compensation plans
- Best uses of 10b5-1 plans
- How to make well-informed decisions regarding Net Unrealized Appreciation (NUA) elections and 83-b elections
Executives May Have Assumed More Risk than They Realize