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Strategies for Concentrated Positions in Company Stock

Strategies for Concentrated Positions in Company Stock

Brian Yolles of StockShield, Tim Kochis of Kochis Global, and Michael Fulginiti of Columbia Threadneedle Investments will present on the topic Strategies for Concentrated Positions in Company Stock on June 18 at the Hilton San Francisco Airport Bayfront.

While executives and high-net-worth employees are often admirably loyal to their companies’ stock, their net worth is at risk if it is concentrated in a single stock. An important role of a financial advisor is to explain the risk of over-concentration and recommend solutions to manage it, including strategies to diversify and create liquidity, and/or protect the stock in a tax-efficient way. This session will discuss various approaches to managing concentrated stock wealth, along with the tax and legal issues they raise. Strategies covered include:

  • Sellinggifting, and donating stock
  • Hedging strategies (prepaid variable forwards, equity collars, protective puts, covered calls)
  • Exchange funds
  • Risk-pooling (stock protection trusts)

The presentation is part of myStockOptions’ annual conference Financial Planning for Public Company Executives & Directors.