With markets near record highs, many executives are facing a complex decision: when (and whether) to exercise their stock options. In his article, “Stock Prices Are High. Is It a Good Time to Exercise Employee Stock Options?”, originally published in Barron’s and featured on MSN, journalist Tom Taulli explores the financial and tax implications of both incentive and nonqualified stock options. He also highlights the potential risks of portfolio overconcentration and unexpected tax liabilities that can arise from these decisions.
Our Chief Investment Officer and CEO, Steven Rogé, contributed valuable insight on the complexities of incentive stock options (ISOs). He emphasized that while ISOs can offer significant tax advantages under the right conditions, the timing of each decision is critical. Steven explained that even small missteps in meeting the IRS holding requirements can turn what seems like a tax-efficient strategy into an unexpected and costly mistake. His perspective highlighted the importance of careful planning and understanding the fine details of equity compensation rules.
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R.W. Rogé & Company, Inc. is an independent, fee-only financial planning and investment management firm serving clients locally and virtually across the country, with Long Island, New York, and Beverly, Massachusetts office locations. R.W. Rogé & Company, Inc. was founded on a “client first” culture and proudly commits to acting in your best interest as a fiduciary. We have helped clients Plan, Achieve, and Live® the life they want since 1986. To learn more about how we do this, as well as our process, explore our detailed overview of services and approach.
