Equity Compensation & Stock Option Planning
If you've earned RSUs, ISOs, NQOs, or ESPP shares as part of your compensation, you already know it's not just "extra pay" — it's a financial planning puzzle with real tax consequences and real risk if it's left unmanaged. In Phase Wealth Management helps tech professionals and equity-compensated employees in San Mateo and the Bay Area turn that compensation into a clear, tax-efficient part of their long-term financial plan.
Equity Compensation I Help You Navigate
RSU Vesting and Tax Withholding
RSUs are taxed as ordinary income at vesting, but employer withholding (often a flat 22%–37% supplemental rate) frequently doesn't match your actual bracket — leaving a tax bill surprise if not planned for.
QSBS Planning (Qualified Small Business Stock)
For founders and early employees, potentially excluding a substantial portion of capital gains from tax — but only if planned for well in advance of a sale or exercise.
Stock Option Exercise Strategy (ISOs vs. NSOs)
Deciding when and how many options to exercise, factoring in AMT exposure for ISOs, exercise cost, and how long you plan to hold shares before selling.
Cash Flow and Liquidity Event Planning
Modeling what your finances look like around an IPO, acquisition, tender offer, or secondary sale — including lockup periods and how much liquidity you'll actually have and when.
AMT (Alternative Minimum Tax) Planning
Specifically for ISO exercises — modeling whether exercising will trigger AMT, and how much you can exercise in a given year without a large surprise tax bill.
Coordinating Equity with Retirement and Investment Accounts
Making sure company stock doesn't dominate your overall portfolio — factoring RSUs/options into your total asset allocation, not treating them as separate from your "real" investments.
Charitable and Estate Planning with Appreciated Stock
Using appreciated company stock for donor-advised fund contributions or gifting strategies to avoid capital gains tax while maximizing the deduction — especially timely around vesting events or before a liquidity event.
Estimated Tax Payments
Because equity income often isn't fully withheld correctly, advisors help calculate and schedule quarterly estimated payments to avoid IRS underpayment penalties.
The Approach​​
Understand what you have.​
Many clients come to us holding multiple types of equity from current and former employers, each with different tax treatment and vesting terms. I start by mapping out exactly what you own, when it vests or expires, and what it's worth.
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Model your options before you act.
Exercising or selling equity is often irreversible. I model multiple scenarios — different exercise dates, sale timing, and tax outcomes — so you can make an informed decision before you owe a tax bill you didn't plan for.
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Reduce concentration risk.
It's common for equity compensation to make up an outsized share of your net worth, especially after a vesting event or IPO. I help you build a diversification plan that reduces single-stock risk without triggering unnecessary tax consequences.
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Plan around the tax impact.
Stock compensation decisions ripple into your broader tax picture — AMT, capital gains, and ordinary income can all be affected by the same decision. I coordinate your equity strategy with your overall tax plan so the two work together, not against each other.
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Fit it into your bigger financial picture.
Your equity compensation isn't a standalone decision — it affects your retirement timeline, your liquidity, and your financial independence goals. I make sure your stock comp strategy supports where you're actually trying to go.
Who This Is For​​
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Tech and Biotech employees with RSUs, ISOs, or ESPP shares
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Employees approaching or going through an IPO or liquidity event
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Anyone holding a concentrated stock position from a current or former employer
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High-income professionals who want a coordinated tax and investment strategy around their equity comp
Ready to build a strategy around your equity compensation?
Frequently Asked Questions​​
How much company stock should I keep?
There's no universal answer — it depends on your overall net worth, risk tolerance, and how much of your financial picture is already tied to your employer through both your paycheck and your equity. As a general guideline, many advisors suggest keeping any single stock position to a modest percentage of your total portfolio, but the right number for you depends on your specific situation. We help you evaluate your concentration risk and build a diversification plan that fits your goals.​​​​
How do I know how much tax I owe on my stock compensation?
The tax owed depends on the type of equity you have — RSUs are taxed as ordinary income at vesting, while stock options (ISOs and NSOs) follow different rules, including potential Alternative Minimum Tax exposure for ISOs. Your specific tax bracket, the timing of vesting or exercise, and any subsequent sale also factor in. We help you project your tax liability across these scenarios so you understand what you owe and can plan ahead, rather than being surprised at tax time.
Should I sell my RSUs as soon as they vest?
Many advisors recommend selling RSUs at vest to avoid concentration risk, since you already paid tax on them as ordinary income. Whether that's right for you depends on your full financial picture and tax bracket.
How are RSUs taxed, and when do I owe taxes on them?
RSUs are taxed as ordinary income at vesting (not when granted or sold), which surprises many employees — understanding this timing is key to avoiding an unexpected tax bill.
What's the difference between ISOs and NSOs, and how does that affect my taxes?
Incentive stock options and non-qualified stock options are taxed very differently, including potential exposure to the Alternative Minimum Tax (AMT) with ISOs — a common area of confusion.
When should I exercise my ISOs?
It depends on your AMT exposure, your cash flow, your view of the company, and your overall tax situation. There's no universal answer — it requires modeling your specific numbers.
What's the difference between a qualifying and disqualifying disposition for ISOs?
A qualifying disposition (holding ISO shares long enough after exercise and grant) gets favorable long-term capital gains treatment. Selling too early triggers a disqualifying disposition, taxed at ordinary income rates. We help you plan around these holding periods.
What should I do with my equity before or during an IPO or acquisition?
Liquidity events bring unique decisions — lockup periods, blackout windows, and trading plans (like 10b5-1 plans) — that need a strategy in place before the event happens, not after.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.