Managing Concentrated Stock Wealth : An Advisor's Guide to Building Customized Solutions

Intro -- MANAGING CONCENTRATED STOCK WEALTH -- Contents -- Foreword -- Acknowledgments -- Introduction -- Getting the Priorities Straight -- Knowing the Client -- Chapter Note -- PART I: SALES -- CHAPTER 1 Constraints on Managing Concentration Risk -- Taxes -- Pre-IPO Illiquidity -- Post-IPO Lockups and Other Market Considerations -- SEC Constraints, the Sarbanes-Oxley Act, and Dodd-Frank -- Notice and Reporting -- Controlled Sales of "Founder Stock" -- No Trading on Material, Nonpublic Information -- No "Short-Swing" Profits for Corporate Insiders -- No Favorable Financing for Senior Executives -- Employment/Career Constraints -- Psychological Barriers -- Chapter Notes -- CHAPTER 2 Sale and Diversification -- Overcoming the Tax Constraint -- Overcoming Psychological Barriers -- ESOP Sales -- Pre-IPO Considerations -- Let's Just Sell It -- CHAPTER 3 Coordinating Long Shares with Stock Options -- Employee Stock Options -- Taxes on Options -- Exercise Strategies -- Swapping -- Option Leverage -- Long Shares: No Leverage -- Ordering Rule -- Chapter Note -- CHAPTER 4 Diversification Sales and Deferred-Compensation Plans -- Deferred Compensation: Then and Now -- Sweetening the Pot -- Risks and Returns -- The Rabbi Trust -- Investment Options -- The Benefits of Deferral -- The Coin's Two Sides -- CHAPTER 5 An Out for Insiders -- SEC Rule 10b5-1 Plans -- Third-Party Discretion -- Formula Plans -- Short-Swing Constraints -- Sales During Retirement-Plan Blackout Periods -- Plan Logistics -- Prearranged Plans: Often a Corporate Requirement -- Appendix XYZ Co. Nondiscretionary Rule 10b5-1 Sales Plan -- CHAPTER 6 Restricted Stock: Tackling Temptation -- Managing the Section 83(b) Election -- All That Glitters -- Risk of Forfeiture -- Opportunity Cost -- A Second-Best Strategy -- Seeing the Light -- Complications for Insider -- The Right Fit -- Chapter Note.