Investment Banking

Cash Management & Borrowing

Concentrated Stock Positions

Equity Based Compensations

EXECUTIVE SOLUTIONS

Business owners and top executives often deem it challenging to save adequate amounts of money for retirement using traditional constricting qualified retirement plans.

More importantly, attracting, retaining and motivating these executives may require the assistance of financial incentives created through a number of different benefit programs. We have the knowledge, understanding and experience to evaluate your present plan and help you decide which plan is the best fit for your executives.

We recognize that executives are busy professionals who may not have the time to actively manage all aspects of their financial lives. They need experienced advisors who will have their best interests to provide comprehensive wealth management tailored to their assessed risk tolerance and personal goals. These needs can encompass 401(k) planning, non-qualified plans, stock options, and ESOP plans.

Through our experience acting as a fiduciary and investment advisor to retirement plans, we can apply this knowledge to your investment needs that are currently not being met. Our unbiased vendor approach affords us the access to top investment managers that we partner with to provide you the solutions you deserve.

EXECUTIVE SOLUTIONS

Investment Banking

Working with Raymond James allows our clients to have access to a full-service investment bank with national as well as international capabilities. Composed of more than 500 capital markets professionals, Raymond James is one of the most highly regarded middle-market equity offering and advisory practices in investment banking today.

During the past five years, we have completed more than 450 managed offerings raising nearly $100 billion in capital for corporate issuers. During that same period, we executed over 130 M&A transactions, including both buy-side and sell-side assignments, with total transaction values exceeding $20 billion.

As a Raymond James client, you have access to the services offered by our investment banking department. To learn more about Raymond James Investment Banking, please contact me and I will put you in touch with the appropriate team.

EXECUTIVE SOLUTIONS

Cash Management & Borrowing

Tracking all of your spending, saving and borrowing as part of your overall financial plan in one place is not only convenient, it’s smart.

Financial planning is just as much about where you are today as it is about where you want to be tomorrow. That’s why we offer you a complete suite of cash management tools and borrowing options that give you the power to manage your day-to-day finances without disrupting your long-term financial plan.

You can enjoy all the features and convenience of a national bank with the personal service of someone you trust and who truly understands you and your financial goals.

It’s like having your bank and your investment firm in one place. In fact, that’s exactly what it is.

EXECUTIVE SOLUTIONS

Concentrated Stock Positions

Executives may own large concentrations in their employer’s stock. This concentration can come in the form of shares of stock, options, restricted stock, SARs and shares in qualified plans. Executives also need to consider their reliance on the company for non-stock-related factors including cash compensation, healthcare benefits and retirement packages. If something were to happen to an executive’s employer that severely impacted its ability to perform over the long run, it could have a devastating effect on the executive’s personal financial situation.

There are a variety of solutions available to address a concentration in a single stock. Every client’s situation is unique, so our team works to first identify the client’s objectives. After understanding the company’s trading policy, we offer recommendations of any possible strategies that can help accomplish the client’s goals.

Techniques that may be of interest to executives with a concentration include:

– 10b5-1 Sales Plans
– OTC Collars
– Variable Prepaid Forwards
– Equity Exchange Funds
– Net Unrealized Appreciation
– Charitable Techniques.

Equity Based Compensations

In addition to cash compensation executives are often compensated through stock ownership. This can come in several forms, including stock options, restricted stock, and stock appreciation rights (SARs).

Stock options offer executives the ability to purchase company shares at a predetermined strike price no later than a defined expiration date. They typically have vesting periods that prohibit exercise prior to a specific date. Stock options come in two forms: non-qualified and incentive.

Non-qualified stock options are taxable as compensation to an executive upon exercise. Incentive stock options can offer favorable tax treatment if certain conditions are met. However, they also create alternative minimum tax implications for some individuals.

There are many factors that go into stock option planning. Our team focuses on a comprehensive approach that analyzes the relative valuation of each option grant, the tax ramifications of an exercise and the client’s overall exposure to the company. Additionally, catalysts such as an approaching expiration or unexpected liquidity need can also warrant exercise. If a decision is reached to exercise, our team can also assist in evaluating methods to pay for the exercise (i.e., cash payment vs. cashless alternatives).

Companies can compensate employees by granting restricted stock. These shares have vesting schedules which prohibit the sale of the stock until the vesting date. Upon vesting, the shares are taxed as compensation at the prevailing market price. The executive must pay for the tax withholding, including federal, state and any applicable local taxes, either through cash or a sale of some of the restricted shares (cashless exercise).

Companies can also issue stock appreciation rights, which act like restricted stock, but are often settled in cash instead of shares. These provide the employee with the same economic benefit as restricted stock, without the company actually issuing shares. This can also be referred to as a phantom stock plan.

Our team is available to help plan for future restricted stock vesting dates and to analyze the possibility of making an 83(b) election within the first 30 days of receiving a new grant. This technique can be useful for executives expecting significant price appreciation in their company’s stock. Electing 83(b) requires the employee to pay taxes upon grant of the restricted stock and converts any appreciation between the grant date and vesting date into a capital gain.

Start Planning Today

Contact us today to learn more about our experience and how we can help you.

Other Questions

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