Surgent's Employee Stock Options: What Financial Professionals Should Know When Advising Their Clients

Overview

Companies often offer stock options as an additional form of compensation to attract and retain the best talent. Used appropriately, stock options can generate significant wealth. Yet many employees are unfamiliar with how stock options work and why options serve as a valuable opportunity for employees to establish and grow their wealth. Unfortunately, employees who receive stock options are often unaware of their inherent risks.

Research has shown that over 75% of employees have never exercised their stock options. Almost half of these individuals (48%), say they held off on selling their options due to fear of making a mistake. This course provides accounting and financial professionals with a broad overview of employee stock options. The program is designed to help participants better understand the fundamentals behind these investments and in turn, better advise their clients.

Highlights

• What stock options are and why they are growing in popularity
• How stock options work, including the process of conveyance and vesting
• How to exercise stock options and the implications from doing so
• The risks associated with stock options and how to manage exposure
• Tax consequences and updates regarding stock options
• Strategies for selecting the best time to exercise stock options
• The difference between the two types of stock options: non-qualified and incentive
• The basic terminology relevant to owning and exercising options

Prerequisites

None

Designed For

Anyone who seeks to have a better understanding of stock options in their role as trusted advisor to their clients

Objectives

• Understand the opportunities and risks associated with employee stock options
• Assist clients with making informed decisions concerning options
• Explain strategies for owning and selling options, including tax consequences

Preparation

None