Executive Services
A growing segment of American are
receiving stock options and restricted securities as a segment of
compensation, and are facing unique challenges in managing personal
wealth. In addition to offering comprehensive financial planning
services that are tailored for your, or your executives’ individual
needs, your Ziegler Wealth Management financial advisor can help you
address the risks associated with holdings concentrated in a single
sector or stock, possible tax consequences and limited liquidity of
these types of executive compensation. We’ll help provide you with
solutions to potential issues, and maximize the opportunities presented.
Employee Stock Options
Many
companies offer their valued employees stock options in order to
encourage ownership, foster commitment to the company, and share in the
company’s success. Options that are “in the money” may represent
sizeable elements of compensation at executive or management levels. If
you, or other qualified associates within your company wish to exercise
your employee stock options without funding the transactions
independently, your Ziegler Wealth Management financial advisor can
facilitate a variety of alternatives. You have the option to exercise
your stock options in a full or partial sale, with the ability to
margin all or a portion of the shares. With the resources available to
you, you’ll have prompt access to liquidity, allowing you to take
advantage of your rewards, as available funds may be used for further
investment or diversification.
Restricted and Control Stock Sales
Maintaining
large holdings of restricted or control stock has its rewards – if a
company does well, its recipients benefit greatly. If you are a
recipient of restricted or control stock, you may reap even greater
rewards by selling all or a portion of your restricted or control
shares and diversifying your portfolio. These types of securities are
not freely saleable in public markets and may be subject to applicable
SEC Rules such as 144, 145, or Shelf Registration. Your Ziegler
financial advisor can guide you through the complexities of selling
restricted or control stock.
Restricted and Control Stock Loans
Liquidating
large, concentrated holdings may not always be the most advantageous
alternative. Significant tax ramifications may result if the stock was
acquired at a low cost basis and has appreciated over time. You may
leverage these holdings by borrowing against them. Under qualified
circumstances you may be able to pledge your shares as collateral and
use the proceeds to diversify your portfolio or satisfy other financial
needs. A restricted or control stock loan allows you to generate
liquidity, while maintaining ownership of the assets.
Additional Investment Alternatives
Your
financial advisor can work with you to consider alternative investment
vehicles and strategies such as hedge funds and collars. Access to
these types of products can support strategies including capital
preservation, risk protection, tax advantaged participation, leverage
and diversification.