Receiving compensation in the form of stock options can be a powerful tool in wealth creation, the only trick is understanding them! Thankfully, our team is well-versed in the various types of stock compensation including Incentive Stock Options (ISOs), Nonqualified Stock Options (NSOs), Restricted Stock Units (RSUs), Restricted Stock Awards (RSAs), Performance Stock Units (PSUs) and even other, less common forms of compensation.
Because these types of benefits can have a significant impact on your annual tax liability, investment strategy, and long-term financial picture, we work with our clients to carefully review their stock option contracts as part of our ongoing financial planning and investment process. Another consideration is the potential concentration risk presented when company stock awards make up a substantial part of your overall compensation; not only is your job security tied to the company performance but your earning potential and overall net worth are as well.
We review these options annually as your benefits and financial position change. In addition to helping you decide which specific actions to take with your options in a timely manner, our goal is to educate you along the way so you can make the decision with confidence and celebrate by seeing your hard work pay off!