Developing a Plan For a Complex Compensation Package
Our client has spent her career laser-focused on driving results and organizational excellence in her C-suite position. Lauren’s success over the years has garnered significant reward through company stock options, executive benefits, and direct compensation. Between balancing her work schedule and spending time with her husband and children, she has not had the time to complete a comprehensive financial plan. As with many of our clients, this oversight is not due to a lack of capability, but of time. Managing a wealth enterprise is time consuming and Lauren found great value is hiring a experienced team to take over the day to day financial planning and investment management.
Over the years, Lauren built up a significant concentration of company stock within her net worth. Between the 401(k) plan, non-qualified deferred compensation plan, as well as exercises of performance stock units and non-qualified stock options – over 50% of her fortune was in company stock. This concentration added more volatility than she realized in her investments. On the risk management front, as her compensation and assets grew, the coverage had not been updated to protect against the value of her earnings potential and the liability insurance to protect the accumulated wealth. In addition, the estate plan she had drafted 15+ years ago had not been updated to reflect the current family dynamic or to take advantage of numerous estate tax minimization strategies.
As a self-made individual, Lauren’s top priority was to maintain financial independence for her family. The days of having to a balance a checkbook and go through expenses with a fine-tooth comb were long behind her. Her hard work and determination brought her financial freedom. Today, with two young children, she recognizes that financial education and training are critical to get them ready to interact with wealth.