Optimizing High Income & Complex Compensation Packages
As a corporate executive, your life is full of high-stakes decisions and complex financial situations. From minimizing taxes in your peak earning years to managing intricate compensation and severance packages as you transition to retirement, you need a wealth management partner who understands your unique needs and can help you achieve your financial goals.
At Granite Harbor, we recognize that your time is valuable. Our team of experts will work with you to develop a personalized strategy that addresses your individual goals and concerns, including proactively partnering with CPAs and attorneys as needed, freeing up your time to focus on what matters most to you.
A: Corporate executives face a unique set of financial challenges, including complex compensation packages, high income levels, and often the desire to plan for a multigenerational legacy. They also need to be mindful of the tax implications of their financial decisions, particularly when their plan consists of company stock. This requires additional considerations, such as reviewing for concentration risk, determining how much stock to keep, and how and when to sell and transfer these holdings. If an executive has highly appreciated holdings, they should examine the option of Net Unrealized Appreciation (NUA) before making any transfers. With this approach, they may be eligible to pay long-term capital gains rates rather than ordinary income tax rates, which could result in hundreds of thousands or even millions of dollars in tax savings.
A specialized financial advisor can help executives navigate these challenges and develop a financial plan that aligns with their unique needs and goals.
A: A financial advisor can help corporate executives navigate the top financial challenges they face, such as tax planning, equity compensation, retirement planning, and asset transition. This can save executives time and stress and help them achieve their financial goals more efficiently.
A: A financial advisor can significantly assist in severance package negotiation by:
Analyzing the existing offer: Identifying potential areas for improvement and negotiation points.
Benchmarking against industry standards: Ensuring the offer is fair and competitive.
Advising on tax implications: Minimizing tax liabilities on the severance package.
Providing emotional support and guidance: Navigating a difficult and stressful situation.
A: Over-concentration in company stock can be risky, so it's essential to diversify your portfolio by:
Rebalancing your portfolio regularly: Adjusting your asset allocation to maintain your target risk tolerance and diversifying into other asset classes that compliment your company stock holdings.
Utilizing options strategies: Implementing covered calls or other options strategies to hedge your stock holdings.
Consulting with a financial advisor: Seeking professional fiduciary guidance to develop an appropriate diversification plan for how much company stock to own, and how to divest when needed.
A: When selecting a financial advisor, executives should prioritize: