Corporate Executives face a unique set of challenges as they relate to wealth management. As a result of your dedication to your company and the time constraints involved in having a full calendar and a busy travel schedule, you may not have given the necessary time and attention to managing your own financial affairs.

While compensation packages for executives are generally lucrative, they can also be quite complicated. There are options for you to explore, allowing you to handle financial issues in an integrated and comprehensive fashion.

Compensation Components for Executives

Wealth Management

Compensation for executives comes in different components: salary, short- and long-term incentive plans, non-qualified stock options, incentive stock options, restricted shares, performance units, and stock appreciation rights – just to name a few.

Due to regulations or changing circumstances within a company, compensation arrangements continue to evolve. These developments are beneficial but can also add an additional level of complexity to your financial plan.

Financial Considerations for Executives

Executives need to make decisions based on many aspects of corporate benefit packages. For example:

  • Should you participate in a non-qualified deferral plan?
  • How will an early retirement affect your pension calculation?
  • What choices can you make now that might lower your future tax liabilities?
  • Should you consider an early buy-out package?
  • How much do you need to retire while maintaining your current lifestyle?

Answering these questions and examining elaborate compensation packages is a difficult thing to do while making important decisions for your company.

As a Corporate Executive, be mindful of your wealth management options:

  • Equity compensation
  • Stock options
  • Grants
  • Restricted shares/performance units
  • Deferral elections
  • Concentrated positions
  • Retirement planning
  • Estate planning
  • Tax strategies
  • Benefits coordination
  • Insurance advice
  • Change in control
  • Educational funding

Disclosures

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice.

There are risks involved with investing, including loss of principal. Current and future portfolio holdings are subject to risks as well. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Narrowly focused investments and smaller companies typically exhibit higher volatility. Bonds and bond funds will decrease in value as interest rates rise. High-yield bonds involve greater risks of default or downgrade and are more volatile than investment-grade securities, due to the speculative nature of their investments.  Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. 

Diversification may not protect against market risk. There is no assurance the objectives discussed will be met. Past performance does not guarantee future results. Index returns are for illustrative purposes only and do not represent actual portfolio performance. Index returns do not reflect any management fees, transaction costs or expenses. One cannot invest directly in an index.This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice.