Entrepreneurs and business leaders often find that a major source of their compensation is derived from equity ownership of the enterprise in which they are involved. Compensation through ownership is a powerful tool to incentivize organization growth but it can also lead to complex questions regarding value and taxes.
Developing and maintaining a sale strategy and a process for valuation tracking can create a clear understanding of total compensation and can alleviate the uncertainty surrounding the decision to exercise the right to sell.
Planning topics often include:
- Net Unrealized Appreciation (NUA)
- Option valuation
- Restricted Stock planning
- Qualified and Non-qualified option planning
- Employee Stock Ownership Plans (ESOP)