Case study · Equity-Compensated Executives
Planning a reduction in concentrated company stock
This engagement addressed a technology executive’s substantial company-stock exposure accumulated through restricted stock unit awards. The work connected a diversification objective with tax considerations and an implementation schedule, illustrating a planning process rather than a concentration target suitable for every executive or an assurance that selling shares produces a particular result.
What situation prompted the review?
A technology executive held a substantial share of the portfolio in company stock accumulated through RSU vesting. Employment income and future awards added to the household’s exposure to the company.
What work did the engagement involve?
Aspirean developed a plan to reduce the position and considered a long-short tax-loss harvesting implementation. The approach required attention to market risk, borrowing and trading costs, tax rules, and the restrictions affecting company-stock sales.
What can another household learn from the process?
The engagement established an objective and a process for reviewing diversification. A staged approach can leave concentration in place, and selling gives up exposure to later company gains; outcomes depend on execution and circumstances.
For general planning questions, read our related educational guide. Review any proposed action with the professionals responsible for your financial, tax, and legal advice.
Drawn from a real engagement, with details generalized to protect the client’s privacy. This description does not establish what another client would experience or promise future results. Every situation differs, and investing involves risk, including loss of principal.
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