Equity Compensation Planning

For many professionals in tech and high-growth startups, equity compensation is no longer a bonus. It’s a central part of your income, wealth-building, and long-term planning. But what makes equity rewarding also makes it complicated.

Without a clear strategy, it’s easy to miss critical tax windows, trigger unexpected liabilities, or leave money on the table. If you’re holding RSUs, ISOs, NSOs, or other forms of company equity, it’s worth understanding how to turn those assets into something reliable on your terms.

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What Is Equity Compensation Planning?

Equity compensation planning is the process of reviewing, timing, and structuring your company equity in a way that fits your overall financial picture.

This includes understanding how and when you’re taxed on equity, knowing when to exercise, hold, or sell, managing tax exposure during vesting, liquidity events, or job transitions, and coordinating equity decisions with your cash flow, goals, and income bracket.

  A good equity plan helps you avoid surprises and make smarter, better-timed decisions with your shares.

Equity compensation planning is the process of reviewing, timing, and structuring your company equity in a way that fits your overall financial picture.

  A good equity plan helps you avoid surprises and make smarter, better-timed decisions with your shares.

Common Types of Equity You May Have

Not all equity is taxed or treated the same. That’s where planning really matters.

RSUs (Restricted Stock Units): Taxed as ordinary income at vesting. Timing a sale too late or too soon can affect both tax rate and portfolio risk.

ISOs (Incentive Stock Options): Come with favorable long-term capital gains treatment, but only if you meet strict holding requirements and avoid triggering AMT.

NSOs (Non-Qualified Stock Options): Taxed as income when exercised, with capital gains applied to later growth. Often given to advisors, contractors, or senior staff.

Founders’ Shares or Early Equity Grants: May have low cost basis and long vesting, creating large tax events later without careful exit planning.

When Planning Matters Most

Not all equity is taxed or treated the same. That’s where planning really matters.

These moments aren’t just tax events, they’re opportunities to build long-term value if handled with care.

Before or after an IPO (or secondary liquidity event)

Switching jobs with unvested or vested equity

Facing a large vesting event in a high-income year

Preparing to exercise ISOs and want to avoid AMT

Evaluating whether to hold or sell vested RSUs

This Is What I Help Clients With Every Day

If your company has given you equity, that’s a sign of trust. But turning that equity into lasting value takes more than just watching the stock price.

I work with tech professionals, startup employees, and founders across the Bay Area and beyond to help them make smarter, tax-efficient decisions around equity. We look at where you are today and where you’re headed, then build a plan that supports both.