Question 1

How is deferred compensation taxed?

Accepted Answer

Deferred comp is taxed when paid, not when earned. Timing matters for taxation and planning. We help structure arrangements to minimize taxes.

Question 2

What about restricted stock units (RSUs)?

Accepted Answer

RSUs are taxed at fair market value on the vesting date. Strategic exercise timing can save significant taxes on concentrated positions.

Question 3

How do I plan for a change of control or exit?

Accepted Answer

Exit events can trigger accelerated vesting, change of control bonuses, and tax complications. We model scenarios and plan accordingly.

Question 4

Can I negotiate tax-efficient severance?

Accepted Answer

Yes. Section 280G parachute payments, timing, and structure all affect taxes. We advise on negotiating better outcomes.

Question 5

What about alternative minimum tax (AMT) from equity?

Accepted Answer

ISOs can trigger AMT. Careful planning around exercise timing and disqualifying dispositions can minimize or eliminate AMT.

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