Compensation Conversations with EBS Part Four


Enhancing Executive Total Rewards with Deferral and Diversification of RSUs

Host: Christopher W. Rich, Managing Director, EBS

Joined by: Chris Rich, Managing Director, EBS

Stock compensation represents the largest component of the total rewards package for senior executives of publicly traded companies. The specific form of equity awards has evolved over the last 15 years driven by an ever-increasing emphasis on performance-based compensation as well as accounting changes.

A portfolio approach is often used today with a combination of time and performance-vested Restricted Stock Units playing a prominent role. While there are many advantages to the use of RSUs and PSUs, one issue is loss of control over the timing of taxation. Many executives are forced to sell a portion of their shares upon vesting to cover taxes.

Complimenting the long-term equity compensation plan with a “state-of-the-art” nonqualified deferred compensation plan can restore control over the timing of income taxation, avoid the forced sale of equity, permit tax-efficient diversification of net worth and provide increased future cash flow.

The fourth and final part of our webinar series will explore the potential advantages of the deferral and diversification of RSUs and PSUs, the mechanics, issues that need to be considered and the implementation and administration steps.

You can now access our recording of our EBS “Enhancing Executive Total Rewards with Deferral and Diversification of RSUs” webinar. In this session, we delve into the intricacies of long-term incentive compensation plans, specifically focusing on the deferral and diversification of RSUs. Our comprehensive presentation equips you with the knowledge and strategies to optimize executive total rewards.

Why Watch Our Webinar?

  • Expert Analysis: Discover the evolving landscape of stock compensation, highlighting the shift towards performance-based rewards and the critical role of RSUs.
  • Strategic Solutions: Learn how deferral and diversification can significantly impact taxation and enhance the value of RSUs, offering a detailed comparison of taxation with and without deferral.
  • Practical Insights: Gain practical advice on implementing and administering a state-of-the-art nonqualified deferred compensation plan, designed to complement your long-term incentive plans.

Key Topics Covered:

  • Understanding RSUs: We explore the characteristics of RSUs, their benefits for companies and executives, and the implications of taxation upon vesting.
  • The Value of Deferral: We illustrate the potential benefits of deferring RSUs, providing a hypothetical scenario to demonstrate the advantages of a well-structured deferral plan.
  • Diversification Strategies: We highlight the advantages of diversifying RSUs, mitigating concentration of net worth and offering financial planning flexibility.

Key Takeaways:

  • Taxation Mastery: Understand the nuances of RSU taxation and how strategic deferral can place you in control of your financial destiny.
  • Diversification Benefits: Explore how diversification within deferred compensation plans can mitigate risks and optimize your financial portfolio.
  • Implementation Blueprint: Our comprehensive guide outlines the steps for successful plan implementation, ensuring seamless integration into your total rewards strategy.

About Executive Benefit Solutions (EBS): With over 30 years of expertise, EBS stands at the forefront of executive benefits consulting, offering tailored solutions that align with your organization’s goals and the needs of your key executives. Our webinar features insights from industry veterans who bring deep experience and a practical approach to navigating the complexities of executive compensation.

Take the Next Step: Dive into our webinar for actionable strategies and expert guidance on leveraging RSUs to their fullest potential. Whether you’re looking to enhance your knowledge or implement new solutions, we provide the resources and support to achieve your objectives.

Contact Us: For more information and to discuss how we can assist with your executive compensation needs, click here.

Unlock the power of RSUs and redefine executive compensation with EBS.

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