EQUITY COMPENSATION PLANNING
RSUs, Stock Options & Tax Strategies
If you receive equity compensation as part of your pay, it’s possible you’re facing significant wealth-building opportunities alongside complex tax and planning challenges.
At Annex Wealth Management, we help executives, professionals, and high earners navigate RSUs, stock options, PSUs, and other forms of equity compensation.
What Is Equity Compensation?
Equity compensation is a form of non-cash pay where your employer grants you ownership in the company. Companies use it to attract top talent, retain employees, and align interests with shareholders.
Common Types of Equity Compensation
Whether your equity comes from a publicly traded company or a private firm (with added liquidity and valuation challenges), proper planning is essential.
Restricted Stock Units (RSUs)
Shares granted by your employer that vest over time (typically 3–4 years). Once vested, they’re taxed as ordinary income at the current market value and appear on your W-2.
Non-Qualified Stock Options (NQSOs / NSOs)
The right to purchase company stock at a predetermined strike price. The spread between strike price and market price is taxed as ordinary income upon exercise.
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Incentive Stock Options (ISOs)
Offer potential long-term capital gains tax treatment but can trigger Alternative Minimum Tax (AMT).
Performance Share Units (PSUs)
Vesting depends on company performance metrics such as stock price, revenue, or EBITDA targets.
How Annex Advice Helps You With Equity Compensation
Ready to harness the power of your equity compensation?
At Annex Wealth Management, we don’t just manage investments – we help you align complex compensation with your goals and plan.
- Comprehensive modeling of vesting schedules, taxes, and cash flow
- Tax-efficient strategies for RSUs, NQSOs, and ISOs (including AMT planning and ISO exercise timing)
- NUA Strategy, where applicable
- Diversification strategies to reduce single-stock concentration risk
- Charitable giving optimization using appreciated equity shares and Donor-Advised Funds (DAFs)
- Year-end tax planning and estimated tax projections
- Coordination with your CPA and attorney for holistic planning
- Preparation for company exits, retirements, or major life transitions
Listen To Annex Experts Discuss Equity Compensation Strategies
In this episode of Wealthyist, Brian Jacobson (Chief Economic Strategist) and Tom Berkholtz break down equity compensation in practical terms — from RSUs and options to vesting, taxes, AMT, concentration risk, and year-end planning moves.