This executive’s IPO hasn’t gone as planned. Like most of Biotech, the stock has fallen hard. A few years ago, when we first met, he had these questions:

1. If the stock price is more volatile than expected, what range of potential outcomes is reasonable?
2. If I exercise my stock options and sell at different prices, what is the estimated tax impact?
3. How might I design a 10b5-1 plan to stay compliant?

He’s analytical. So, after reviewing the details of his stock options and restricted stock, we built this equity compensation grid. It was a lot of work, but worth the effort.

We refer to it time and again, as the price fluctuates and his tax rate changes. In the beginning, the ‘more favorable’ scenarios played out. Cha-ching. Unfortunately, the ‘less favorable’ ones now unfold.

One surprise. He was more prepared mentally & emotionally for what’s happening today by ‘seeing’ it years ago.

Disclaimer: For information purposes only and should not be interpreted as legal, tax or financial advice. Always consult your CPA/tax advisor/attorney (or reach out to us;) to discuss your specific situation. Past performance is no guarantee of future results.