A stock appreciation right is a method that companies can use to give their executives and other employees a bonus if the company performs well financially. The bonus payment is equal to the appreciation in the company stock between the time of the grant price of the SARs and the exercise date of …
[Read more...] about What You Should Know About Stock Appreciation Rights?
Company-owned stock and stock options are assets that may generate significant wealth. They may also pose the largest risk to future financial security. This risk reward tradeoff is inherent to investing and is heightened as one’s concentrated stock position increases. In truth, the value of a …
[Read more...] about Diversification Strategies for Company Owned Stock and Stock Options
A restricted stock plan is a compensation tool offered by employers to attract and retain key employees. Often times the restricted stock is not owed by the recipient until certain conditions are met, which is often the passage of a specific period of time. During this restricted period, the …
[Read more...] about What You Should Know About an 83(b) Election and Restricted Stock
Concentrated equity, also known as owning a large position in one company stock, can exist in many forms. One form of concentrated equity may be the result of working for an employer who has issued stock ownership via restricted stock and stock options. These types of stock ownership and stock …
[Read more...] about Managing Concentrated Equity in Company Stock and Stock Options
Concentrated equity can be defined as owning a substantial position in one company’s stock. For such concentrated positions, one risk for a single owner may be a lack of diversification*. Or said another way, having too many eggs in one basket. However, concentration risk may not be a bad …
[Read more...] about Using After-Tax Value to Evaluate Liquidation Priority of Concentrated Equity
