Case Study 3 – Crafting Corporate Exec’s Financial Strategy

Managing Stock Options Play Role in Crafting Corporate Exec’s Financial Strategy

Client Situation:

For this Fortune 500 company executive, developing a strategy to accommodate his large number of stock options was key to crafting an effective retirement plan and portfolio. As a high-income earner, the client wanted to ensure the plan was built in a tax-advantaged format while his employer went through an Initial Public Offering (IPO).

Client Objectives:

During the interview and discovery process, Ironwood Investment Counsel discovered a number of opportunities to assist the client, including, but not limited to:

  • Developing an overall retirement plan structured around current income, long-term goals and lifestyle needs
  • Analyzing and executing a strategy for exercising nonqualified stock options that met his overall objectives
  • Effectively planning for tax payments based on the client’s high level of ordinary income as a corporate executive

How We Helped:

Ironwood created a comprehensive retirement plan focused on the client’s long-term cash needs. Concurrently, Ironwood designed and implemented a tax-advantaged investment portfolio that aligned with the client’s continued retirement goals while also considering all stock options.

“For this particular client, we reviewed different scenarios to help us determine the various options plans and how they might fit in the client’s overall financial framework,” said Matt Carter, a Partner in the firm. “Additionally, we created a wealth management team that included our representatives, as well as an appropriate estate lawyer, tax accountant, and insurance expert to develop a customized solution for this client’s financial situation.”

Overall Results:

Ironwood successfully created a retirement plan and investment structure to meet the client’s overall retirement goals while also building a strategy to manage the client’s stock options before and after the business went public.

*Please Note: Limitations: The above Case Study is hypothetical-not involving actual Ironwood clients. The Case Study illustrates the hypothetical experience of a fictitious client based on a scenario that an actual client might experience. The Case Study is designed to generally illustrate how we may provide our services to our clients. Keeping in mind that no two clients, situations, or experiences are exactly alike, the Case Study is not to be construed as an endorsement of Ironwood by any of its past or current clients, nor any assurance that Ironwood may be able to help any client achieve the same satisfactory results. To the contrary, the Case Study should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results or satisfaction if Ironwood is engaged, or continues to be engaged, to provide investment advisory services.