RSUs in your investment portfolio

If you receive a large grant of RSUs, you will have many risks. Risk of termination before vesting, risk of market volatility in stock price, and asset concentration are a few. You will need to decide whether you will keep the stock once vested, or if you prefer to sell the stock at vesting date. Concentrated Positions A concentrated position…

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Incentive Stock Options and the Alternative Minimum Tax

Alternative minimum tax ("AMT") is a hard proposition for many tech employees.  When you exercise incentive stock options it increases your net worth, but you don't actually get any cash.   This puts you in a tough spot for paying any AMT later on.  This is an important topic for start-up tech employees and it is easy to miss. Incentive stock…

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Trading restrictions on company stock

Are you subject to restrictions in selling your company stock? Many public companies, like Amazon, institute ‘trading windows’ for key employees and executives.   Whether you are a ‘key employee’ generally boils down to access to company profit and loss details. Profit and loss access generally includes: an executive with control over a piece of the income statement or department…

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3 Steps for Evaluating Levers in your Offer Letter – Stock, Salary, Bonuses

Recently I received the following note: “I found the job I want!  I am pleased with the initial offer, but I asked the recruiter to go back and see if there was any more wiggle room to increase my total compensation. #negotiating The recruiter came back with a new offer this morning. Total increase in my total compensation for year 1, but they…

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How to make an 83(b) election for your company stock options

Many individuals are interested in making a tax election to minimize long-term tax due. However, this may or may not be a good choice for you. I will not go through the analysis and pros/cons of such a choice in this post. This is for information purposes on the mechanics of making the election. Before making the election, it is…

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Offer Letter Basics: RSUs

How do you evaluate an offer from a large tech startup or established tech company like Microsoft or Amazon? The first step in evaluating your offer is to understand it! Below, we discuss one of the components of your offer letter - Restricted Stock Units (RSUs). Restricted Stock Units (RSUs) Structure: Each RSU equates to a share of the company stock.  ex.…

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How to negotiate your next compensation package

When deciding to leave a company and begin a new adventure, prepare for your compensation negotiation. Once you choose your new path, how do you maximize your financial outlook as well? Many technology-based companies view attraction or retention of key employees as their #1 problem.  There is demand for talent in a limited pool of individuals. The majority of these employers rely on…

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