THE FIRST QUESTION WE USUALLY GET:
"WHAT ISSUES SHOULD I CONSIDER REGARDING MY INCENTIVE STOCK OPTIONS?"
Incentive Stock Options (ISOs) are a form of equity compensation, offering employees a share in the potential appreciation of a company’s value, with preferential tax treatment. Many of our clients have been (or will be) granted ISOs by their employer during their career. Deciding whether and when to exercise ISOs and sell shares can be difficult and requires cash flow analysis, complex tax planning, and a long-term strategy.
Our typical client is a Highly Compensated Employee (HCE) who makes over $130,000 in compensation and finally has the ability to save money but is being treated differently in their 401(k) rules. Retirement plans, HSA’s, deferred comp plans, stock options, eliminating debt, reducing taxes now & in retirement. It all takes planning. How do you put it all together? We will walk you through the maze of options and find the best fit for you. You have so many decisions to make on a daily basis and coming to a clear understanding of how to best utilize your numerous options can be challenging.
But why? ISO Vesting Schedules, Clawback Provisions, AMT Calculations, and Early Exercise options are not what you are thinking about when you are trying to decide what to have for dinner, how to get the kids to their next function and if you can ever exercise with your crazy schedule.