Equity Compensation Planning

How SAGEbroadview helps you optimize your Employee Long Term Incentive Plans (LTI)

These LTI plans typically include some type of equity-based compensation. Common forms of equity compensation include:

  • Stock options
    • Nonqualified stock options (NQSO)
    • Incentive stock options (ISO)
  • Restricted stock or restricted stock units (RSU)
  • Performance shares (PSU)
  • Stock appreciation rights (SAR)


Equity compensation plans have become increasingly complex for ordinary individuals to understand. Here are areas where SAGEbroadview can help you optimize your equity compensation:

  • Managing your risk exposure, i.e. are you too concentrated in your employer stock?
  • Managing any executive share ownership guidelines and stock retention requirements
  • Considering the tax implications of stock option exercises.
    • We create tax projections modeling different exercise scenarios
  • Considering the tax implications of the vesting of restricted stock, RSU’s or performance shares (PSU’s).
    • We create tax projections including the vested amounts to determine if you are under withheld on federal and state income taxes so you can prepare for any tax bills
  • Evaluating if you should hold or sell vested restricted stock
  • Negotiating job packages with your current or prospective employer
  • Evaluating early retirement packages
  • Assisting with implementation of equity compensation strategies
  • Helping you progress towards your financial goals by making the best use of the proceeds from equity compensation vesting and exercises. Should you:
    • Invest in a diversified portfolio for future retirement needs?
    • Pay off, or pay down debt?
    • Fund a 529 plan for your children’s education?
    • Fund other goals?

Tax Planning Resources and/or Additional Information


Tracking of Equity Compensation

  • We use tools at www.mystockoptions.com to track our client’s total pre-tax gain for vested and unvested stock options, restricted stock, and SAR’s. We also use this site to track and set alerts for our client’s vesting dates, and expiration dates.

Analysis of Equity Compensation

  • We use specialized software to help guide us with the following analysis:
    • Developing a framework for providing company stock and stock option guidance
    • Modeling Black-Scholes value of stock options
    • Timing employee stock option exercise /sell decisions
    • Monitoring key decision criteria (e.g. Vesting, Expiration, Risk/Reward, Concentration)
    • Calculating concentration risk and leverage impact
    • Advising clients what equity compensation they may forfeit by leaving the company

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