Skip to Content

You need a smart tax strategy to get the most out of your stock options

June 2, 2020 Article 6 min read
Authors:
Jeff Watkins Wealth Management

Following the 2017 tax law changes, stock options are making a comeback. But in order to get the most out of an option-based pay structure, executives need a smart tax strategy. Jeff Watkins outlines the considerations in Kiplinger.

Man sitting at his home office desk writing with a pen.When the dot-com boom turned to bust two decades ago, stock options were one of the biggest pain points. As the market  reached its peak, employees took risks with their option grants that bit them hard when prices collapsed. Many people ignored warning signs and believed the stock price could go only one way: up.

Option-based executive pay fell relatively out of favor. But there are signs it made a comeback as the stock market rose to record highs.

Related Thinking

Group of financial advisors celebrating.
September 28, 2023

PMFA is named a top RIA by Barron’s for another year!

In The News 1 min read
Trustee learning about their options for outside expertise.
September 19, 2023

Accidental trustee? Options for support and guidance

Article 5 min read
Woman riding an electric scooter down the road.
September 1, 2023

Plan for more: 5 key elements of your financial plan

White Paper 20 min read