Daniel Zajac, CFP | Equity Compensation with Daniel Zajac

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

by Daniel Zajac, CFP® | Last updated Dec 19, 2023

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® | Last updated Oct 24, 2023

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® | Last updated Mar 30, 2024

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® | Last updated Mar 31, 2024

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).

What Equity Compensation Shares Are the Best to Contribute to a Donor Advised Fund? Part 2

by Daniel Zajac, CFP® | Last updated Nov 7, 2024

To achieve this win-win ideal, it’s important to be deliberate about which equity compensation share lots you donate, as well as whether you donate them as post-sale cash proceeds, or unsold shares. We concluded that cash isn’t necessarily king when donating to a DAF. Directly donating low basis, long-term shares usually reigns supreme.

What Equity Compensation Shares Are the Best to Contribute to a Donor Advised Fund? Part 1

by Daniel Zajac, CFP® | Last updated Nov 7, 2024

If there’s such a thing as a match made in philanthropic heaven, it may be the ability to donate a portion of your equity compensation shares to a Donor Advised Fund (DAF). DAFs are relatively easy to fund, easy to manage, and they ensure that you get a tax deduction for the full, appreciated value of your donated stock.

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

by Daniel Zajac, CFP® | Last updated Mar 31, 2024

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?

Should You Really Sell Your Vested Restricted Stock Units? The Answer Is a Resounding “Maybe”

by Daniel Zajac, CFP® | Last updated Mar 31, 2024

Do you hold Restricted Stock Units (RSUs) that are about to vest, or have recently vested? That probably means you’re a valued employee, so congrats on that. Still, vested RSUs are a taxable event in your life, as well as a financial planning conundrum: Are you better off hanging onto the vested company stock you now hold, or selling them, to reinvest the proceeds elsewhere? A common—and often correct—consensus is to sell the vested stock shares that originate from vested RSUs.

83(b) Elections: What they are, and What You Need to Know

by Daniel Zajac, CFP® | Last updated Mar 30, 2024

When you receive equity compensation in the form of restricted stock, non-qualified stock options, or incentive stock options, you may have the opportunity to make an 83(b)…

A Timeline of Events for Your Incentive Stock Options

by Daniel Zajac, CFP® | Last updated Mar 31, 2024

If you are lucky enough to be granted incentive stock options (“ISOs”) as part of your compensation package, it’s important to understand the timeline of events.

I’m Daniel Zajac, CFP®

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

What Equity Compensation Shares Are the Best to Contribute to a Donor Advised Fund? Part 2

What Equity Compensation Shares Are the Best to Contribute to a Donor Advised Fund? Part 1

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

Should You Really Sell Your Vested Restricted Stock Units? The Answer Is a Resounding “Maybe”

83(b) Elections: What they are, and What You Need to Know

A Timeline of Events for Your Incentive Stock Options

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