How SAGEbroadview Helps You Optimize Your Equity Compensation

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

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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