Every company, as it approaches a liquidity event, has an army of advisors—accountants, attorneys, and investment bankers. Very few, however, employ advisors specifically to help their employees make the best of the opportunity.

• How to keep employees from being distracted or burdened by the IPO process, so that they concentrate on continuing to build value for the company.
  
  
• How to help employees make sound decisions regarding investments, taxes and wealth management, without getting into the business of giving financial planning advice.
  
  
• How to balance the company’s interest in limiting mass sales of stock right after lock-up ends, with the executive’s need for diversification.
  
  
• How to manage the company’s risk of executives finding themselves in trouble with overly aggressive trading strategies, margin accounts and inappropriate levels of debt.
  
  
• How to help younger, less experienced employees better understand their financial situations, so as not to have an overly optimistic view of their financial independence level and thus leave the company prematurely.
  
  
• How to coordinate executive stock sales with insider issues, trading black-outs and lock-up periods.
  
  
• How to help executives understand tax considerations, especially in regards to stock options, that might prove damaging and distracting to employees who don’t fully understand the implications of option exercise and stock sale strategies.

For information on Financial Planning for Executives, contact Robert Corno, 703-716-6000 or email fp@masoncompanies.com

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