Equity Based Compensation
Incorporating Equity Awards And Options Into Your Financial Plan
Equity-based compensation has become an important component of the total compensation package for many executives. The reason why is simple. Employers want to incentivize performance, so they create a link between the employees’ net worth and the business’s financial outcomes.
Typically, as an employee rises through an organization, equity-based compensation becomes a greater percentage of their compensation — and of their net worth. There may be many different kinds of equity awards — each with there own special characteristics.
Employees in this situation may face a number of additional challenges that others may not, including:
- Concentrated stock positions
- Understanding the various restrictions on the options
- Tax ramifications upon receipt and/or executing stock options
JIC develops strategies based on each executives’ goals and objectives. There is no single solution that works in every situation. Rather, JIC’s customized solutions are based on each executives’ specific facts and circumstances. When you work with JIC, you get a customized plan developed based on your unique objectives and needs.