Daniel Zajac, CFP | Equity Compensation with Daniel Zajac

Rethinking Whether to Exercise and Hold Non-Qualified Stock Options for Long-Term Capital Gains Tax

When it comes to evaluating strategies to exercise your Non-Qualified Stock Options (NQSOs), what is your best plan of attack? Do you: Exercise and sell all your NQSOs immediately, cashing out the full proceeds? Exercise your NQSOs and hold shares of stock, hoping the stock price will go up? Or, leave your NQSOs unexercised and hope the stock price will go up? If you anticipate a higher stock price in the future…

Concentration Risk and Your Equity Compensation: Reasons and Rebuttals

by Daniel Zajac, CFP®, EA

Concentration risk is an issue of interest to nearly every employee, executive, business owner, or anyone else holding company stock and employee stock options. What is concentration risk? It’s loosely defined as holding a significant portion of wealth in a single stock, which could result in an inappropriately diversified portfolio. Unfortunately, the ambiguity associated

What Executives Need to Know About Performance Awards

by Daniel Zajac, CFP®, EA

A performance award is a grant of company stock or stock units, typically tied to a pre-determined metric or goal that is specific to the recipient or award itself. More often than not, the recipient is an executive. Interchangeably referred

The 10b5-1 Plan: 8 Frequently Asked Questions and Recent Updates

by Daniel Zajac, CFP®, EA

If you’re an executive or an employee with significant equity in your company from employee stock options, restricted stock units, or other stock grants, you may have a continual need to sell stock. However, SEC regulations, company insider trading policies and fears of allegations of insider trading may prevent proper diversification of holdings. Fortunately for executives and insiders, Rule 10b5-1 trading plans can allow flexibility to sell stock without regard to limitations imposed by company insider trading policies while complying with SEC regulations. Such plans also provide an affirmative defense to allegations of insider trading.

A Quick Take on the Tax Treatment of Incentive Stock Options

by Daniel Zajac, CFP®, EA

If your employer has granted you incentive stock options (ISOs), you’ve likely spent time researching the tax treatment. If so, you’ve probably read about the alternative minimum tax (AMT), and qualifying and disqualifying dispositions. Perhaps the complication has left you wondering: What does this mean to me as a taxpayer?

Simplifying the Equity Compensation Complexities: Keep it, Spend it, or Save it

by Daniel Zajac, CFP®, EA

If you’re wondering how to maximize the value of your incentive stock options (ISOs), non-qualified stock options (NQSOs), restricted stock units (RSUs), or other forms of equity compensation, you’re not alone. After all, there is plenty to think about if you’ve been granted equity compensation. You may dream of how to strike it rich. You may fear you’ll do something wrong and miss out. You might become mired in taxing technicalities, including AMT calculations. All that thinking can backfire if “TMI” (too much information) prevents you from proceeding.

A Comparison of Employee Stock Options vs. Restricted Stock Units

by Daniel Zajac, CFP®, EA

Employee stock options and restricted stock units are collectively discussed under the umbrella of equity compensation. As equity compensation, they have some similarities. Yet they also have a lot of differences. It is these differences that are reviewed and highlighted in this article.

Comparing Incentive Stock Options and Non Qualified Stock Options

by Daniel Zajac, CFP®, EA

Non-qualified stock options and incentive stock options are the two types of employee stock options that you may receive as part of your compensation package. While they have some similarities, they also differ, particularly when speaking to how they may be taxed at exercise and upon the final sale of stock.

Why Exercising Incentive Stock Options When the Stock Price is Down May Not Be Your Best Strategy

by Daniel Zajac, CFP®, EA

Wouldn’t it be great if your company stock price only ever went up—especially if you’re participating in its growth through incentive stock options (ISOs)? Unfortunately, that’s not always how the world turns. If the share price goes down instead, you may be bummed to see the value of your incentive stock options is less than what it once was. However, a down stock price might mean that you could score some tax breaks if you exercise and hold some of those ISOs. When the price is down, the move might help minimize alternative minimum tax (AMT).

How Incentive Stock Options May Be Taxed: And Some Caveats About Seeking A Qualified Disposition

by Daniel Zajac, CFP®, EA

Who doesn’t love a great tax break? You and I can’t personally reverse a bear market or revise Federal regulations. But we do get to decide when and how to exercise, hold, and sell our incentive stock options (ISOs), dictating whether we have a qualified disposition or disqualified disposition. Why not make best use of your tax-planning powers when you do?

I’m Daniel Zajac, CFP®

Rethinking Whether to Exercise and Hold Non-Qualified Stock Options for Long-Term Capital Gains Tax

Concentration Risk and Your Equity Compensation: Reasons and Rebuttals

What Executives Need to Know About Performance Awards

The 10b5-1 Plan: 8 Frequently Asked Questions and Recent Updates

A Quick Take on the Tax Treatment of Incentive Stock Options

Simplifying the Equity Compensation Complexities: Keep it, Spend it, or Save it

A Comparison of Employee Stock Options vs. Restricted Stock Units

Comparing Incentive Stock Options and Non Qualified Stock Options

Why Exercising Incentive Stock Options When the Stock Price is Down May Not Be Your Best Strategy

How Incentive Stock Options May Be Taxed: And Some Caveats About Seeking A Qualified Disposition

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