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Equity Compensation Part 1: Managing Equity Compensation Within Your Personal Financial Plan

Doug Fabian

Senior Vice President

Josh DeForest

CFA, CFP®, Managing Director


Part 1 Managing Equity Compensation Within Your Personal Financial Plan

For employees of both public and privately held companies, equity compensation such as stock options or co-ownership can create a significant opportunity to grow wealth. However, participating in this type of award plan also carries some financial risk and requires careful management.

In this first podcast of our three-part series on equity compensation, host Doug Fabian and Josh DeForest, advisor, CERTIFIED FINANCIAL PLANNERTM, and a regional director of Mercer Advisors, lay out the potential benefits and drawbacks that employees need to consider. They also explore why it’s crucial to view and manage equity compensation packages through the lens of a comprehensive financial plan.

Tune in to learn more about:

  • The four most common equity compensation plans that companies offer
  • How the proceeds from different plans are taxed
  • The risks that come with accepting company stock or other equity positions in place of salary
  • Ways to avoid concentrating too much of your wealth in an equity compensation package
  • The three best practices for managing equity compensation awards