Executive Compensation Planning

RSU Grant Issues

Do you need to review how RSUs work?
Do you need to confirm the conditions of vesting?
Does your plan allow you to defer distribution of shares and continue to hold units until a later date, post-vesting (e.g., at retirement)?
Do you need to review what you will receive when your RSUs vest?
Does your company accrue/pay dividend equivalents while you hold RSUs?
Do you need to review how termination of your employment (voluntary or involuntary), disability, or death might affect your interests under your plan?

Do shares of your company’s stock, along with any unvested RSUs, make up a significant percentage of your investment portfolio (e.g., more than 10%)?
Does your company have a blackout period or trading window, or are there other limitations on your ability to sell shares?
Do you need downside protection while holding your company’s shares?
Are you considering selling company shares at a loss?

Do you need to understand the tax consequences of the grant of your RSUs?
Do you need to understand the tax consequences of the vesting of your RSUs?
Do you want to reduce your income tax liability in the year that your RSUs vest?
Do you need to plan for tax withholdings in the year of vesting?
Does your company offer the IRC §83(i) election to defer the recognition of income for up to five years after your RSUs vest?
Do you need help determining your cost basis in any shares acquired at vesting?
Do you need help determining your holding period for shares acquired through your RSU plan?
Do you need help understanding the tax consequences of the sale of shares acquired through your RSU plan?

Do you need to assess your employer’s future equity value and long-term viability?
Is there a risk that your company will be acquired in the near future?
Do you have future financial goals that your RSUs/shares could help to achieve?
Do you need to address your RSUs in your estate plan or in a pending divorce?
Does your plan allow you to designate a beneficiary?
Do you need to consider any state-specific issues?

Do you need help understanding the options granted to you?
Do you need help determining the tax implications at grant?
Are you subject to a vesting schedule?
Will you be subject to clawback provisions?
Do you need to review how termination of your employment (voluntarily or involuntarily), disability, or death might affect your interests under your plan?

Do you need help determining the value of your interests?
Do you need to assess your employer’s future equity value and long-term viability?
Do you need to confirm the status of your ISOs?
Do you need help determining the income tax implications of exercising vested options?
Are you permitted to exercise early and purchase stock before vesting?
Do you lack the funds necessary to do a cash exercise?
Do you want the flexibility to avoid double taxation in the event you may choose to sell within one year of exercise?

Does your company require pre-clearance or have blackout or window periods that might affect your ability to trade your shares?
Do you own unvested shares due to an early exercise?
Do you need help understanding the tax consequences of the sale of shares acquired through your options?
Do you need help tracking your regular tax basis, AMT basis, and your Minimum Tax Credit?

Do you need to increase your withholdings (beyond any employer withholdings) or make estimated payments for taxes attributable to your options?
Do you need to evaluate your company stock position?
Do you need a plan to mitigate concentration risk?
Is the benefit of waiting to make a qualifying disposition greater than the risk of a price decline while holding shares?
Is there a risk that your company will be acquired within the next two years?
Do you need help factoring in the risks of a stock price decline when considering whether to exercise and/or to make the IRC §83(b) election for AMT purposes?
Do you need to address your options in your estate plan or in a pending divorce?
Do you need to consider any state-specific issues?
Do you have future financial goals that your options could help to achieve?

Do you need help understanding the options granted to you?
Do you need help determining the tax implications at grant?
Is the exercise price less than the FMV at the grant date?
Are you subject to a vesting schedule?
Will you be subject to clawback provisions?
Do you need to review how termination of your employment (voluntarily or involuntarily), disability, or death might affect your interests under your plan?

Do you need help determining the value of your interests?
Do you need to assess your employer’s future equity value and long-term viability?
Do you need help determining the income tax implications of exercising vested options?
Are you permitted to exercise early and purchase stock before vesting?
Do you lack the funds necessary to do a cash exercise?

Do you own unvested shares due to an early exercise?
Do you need help determining the basis of your shares?
Do you need help understanding the tax consequences of the sale of shares acquired through your options?
Does the company require preclearance or have blackout or window periods that might affect your ability to trade your shares?

Do you need to increase your withholdings (beyond any employer withholdings) or make estimated payments for taxes attributable to your options?
Do you need to evaluate your company stock position?
Do you need a plan to mitigate concentration risk?
Do you need help factoring in the risks of a stock price decline when considering whether to exercise and/or to make the IRC §83(b) election?
Do you need to address your options in your estate plan or in a pending divorce?
Do you need to consider any state-specific issues?
Do you have future financial goals that your options could help to achieve?