Stock Options & Restricted Stock

In today’s business world there are constant mergers and acquisitions of companies, both new and established. When that happens, stock option and other compensation plans vest and cash out and literally overnight, executives can become millionaires. Start-up businesses can be sold for staggering sums. And it is no secret that the major financial motivator for executives is that stock option package. Once a company goes public or the stock price increases through dramatic growth as frequently happens, the amount of funds can grow enormously. The challenge of managing these large sums can be truly daunting.

Managing Stock Options & Restricted Stock

Different types of option packages create differing sets of tax and investment issues that are complex and not easily resolved. The issues facing executives with stock options or restricted stock are far more complex than those faced by executives with large compensation packages based on salary alone.

Estate planning becomes more complex as well. For example, vesting schedules vary significantly from firm to firm and plan to plan. This means that an estate can literally have millions of dollars of options that become vested over time and are just ignored, much to the regret of the recipient who is suddenly faced with unpleasant tax surprises and missed opportunities.

The fact is that no matter what the category of stock options, there are traps that need attention.

The Darrow Company understands the challenges that complex stock option programs can engender. We have the experience to help you sort through the alternatives and create a comprehensive, strategic wealth management program factoring in all the necessary tools to address your personal stock option issues today and in the future. Our program, The DarrowCFO™ Advantage takes a strategic view in creating a comprehensive wealth management solution.

By looking at your total current wealth plus your anticipated assets as options become vested, we can help you create estate and trust documents that integrate all these factors into a logical plan, minimizing the current and anticipated tax liabilities as well as building an estate and investment plan that is right for you and your family.

High net worth clients understand that the more they have, the more is at risk. As a result, the complexities of managing your assets demand versatility, skill and experience. We work with you to help you navigate through the myriad of choices to find the total solution that is right for you. Contact Us and we will arrange for The Right Fit™ Meeting to see if our solution fits your needs.