What’s Keeping This Executive up at Night?
With a PhD in Engineering, the seasoned systems engineer brought his wife, Deena, her father and his mother from India on an H1B visa ten years ago with his employer in Pharma. His work schedule is full, leaving little time to analyze his financial position and equity rewards.
Arnav’s nine-year old autistic son, Sai, means the world to him and Deena, as well as to their parents. Sai manages well in the school nearby in North Jersey. Arnav wants to provide for his special needs throughout his life and for Deena, her mother and Arnav’s father to know their future is secure.
His financial priorities include finding an advisor who can develop his financial plan and who understands the nuances of equity compensation. Deena needs to be part of the planning conversation. What is it worth and what should he be doing? Can they fund their semi-annual India visits from one source or another? And, what planning vehicles are available to ensure Sai’s future once one or both of them are gone?
They both need to be brought up to speed on his equity rewards: Restricted Stock Units (RSUs) and Nonqualified Stock Options (NQOs) that have started five-year vesting at a frequency of 5% per quarter. Arnav is confused about withholding and what his rewards will be worth once everything vests. Will it continue to vest if Arnav were to pass unexpectedly?
He hasn’t been as attentive as he would like. It’s time to come up to speed and move forward with seeking a professional advisor.
*The name, likeness, and circumstances in this example are a fictional composite of facts from executives similar to actual SFG Clients.