IPO: Impact on Executive Wealth and Liquidity

A fast-growing medical device company expects to file for an initial public offering (IPO) next year. The company has offered incentive stock options (ISOs) to their executives and these execs now have the opportunity to exercise early, if they choose to. After the IPO, executives will be forbidden to sell during the 180-day lockup period and there will be limits detailing how much company stock an executive can sell all at once. The executives realize that these economic and tax decisions are more complex than those they have had to make in the past.

Survey Finds That Financial Planning Improves Participant Perceptions Of Equity Awards

A couple of years ago, UBS started a research project called UBS Participant Voice, a series of surveys seeking to canvas the attitudes of stock plan participants toward their equity awards (see our blog commentary on the first survey). The latest survey in the series, which obtained responses from more than 1,000 stock plan participants across a variety of industries, delivers some interesting insights into the value employees both perceive and actually get from equity awards. These insights may be useful both to equity-granting companies and to financial advisors who have clients with stock compensation.

Vesting and Exception Policy for Early Retirement Disability

Everyone was stunned when Liam, the hard-charging chief logistics officer, suffered a heart attack at the pharmaceutical company where he works. While he’s mostly recovered, Liam is retiring on doctor’s orders and has reached out to Margaret, his company’s stock plan administrator. Liam qualifies for permanent disability, which would allow him to retire sooner than expected. The question remains how to put together the resources.

6 Steps to Implementing a Successful Financial Wellness Program

According to the Bank of America Merrill Lynch Workplace Benefits Report, 81% of employers consider their employees’ overall personal financial well-being part of their responsibility. More important than the sense of responsibility employers feel around offering financial wellness tools, perhaps, is the effect on employee behavior and overall satisfaction. The report also found that 76% of employers feel that providing this benefit to employee’s results in a more satisfied workforce and 66% of employers feel offering a financial wellness program fosters a greater sense of loyalty.