Hedges Wealth Management is a boutique firm based in Charleston SC and within close proximity to Benefitfocus (NASDAQ: BNFT), Blackbaud (NADSAQ: BLKB) and FedEx (NYSE: FDX) and Boeing (NYSE: BA). The company has had the pleasure of getting to know these companies rather well over the past ten years and many people that work there.
Boeing has been a public company for decades and had a market capitalization of $95 billion as of March 2014. Boeing stock is held globally by individuals and institutions on an inordinate scale, creating wealth appreciation for its shareholders, but not without fluctuations.
Blackbaud took their firm public through an IPO in 2004 opening at around $9 / share. It has increased in valued by 248% to around $31 / share as of March 2014. The market capitalization of Blackbaud was around $1.4 billion as of March 1st 2014.
Benefitfocus went public in 2013 through an IPO. Its share price has risen dramatically to over $64 / share and a market capitalization of over $1.5 billion as of March 1st 2014. This has been an incredible wealth creating event for its founders, employees and shareholders.
FedEx is a major player in the distribution and logistics industry. The company share price has gradually increased over the years since its initial public offering, trading at around $130 / share as of March 2014. FedEx rewards its employees through a stock plan, and has created an enormous amount of wealth over the years for longterm employees who participate in such programs.
Stock and Option Benefit Plans at Benefitfocus, Blackbaud and FedEx and Boeing are a fabulous way to reward hard working employees. Working for a private company that eventually files for an IPO is certainly one of the more lucrative career paths. In our experience of working together with clients who are employees of public companies, we find it prudent to provide clear oversight and guidance on protecting the wealth that the employees have built through their careers at such firms.
We have become extremely familiar with the Benefitfocus Stock Option Plan Documents and the Restricted Stock Unit Award Agreement, along with BNFT Stock Option Grants and BNFT Common Stock Grants. There are very specific rules that must be followed with regards to executing BNFT Options and attaining BNFT Stock, especially with regards to vesting schedules and tax implications.
Clients who are working at public companies like Boeing, Blackbaud, FedEx and Benefitfocus should have the ability to exclude specific stocks as a holding so that they are not over exposed on a risk perspective to their company stock fluctuations. This has proved extremely diligent for executives of public companies who have been granted stock options and common stock. Historically, we are all to well aware of the unfortunate people who worked at Enron, WorldCom, Wachovia and Bear Stearns. Many people lost their entire investment portfolios and retirement accounts due to the bankruptcy and accounting scandals of their employer.
A few key notes on Stock Option Plans:
1) In order to exercise options one must sometimes write a check to their employer i.e. they must have enough cash to actually purchase their options.
2) When exercising options, you may want to consider holding the stock greater than 1 year so as to incur favorable tax treatment, and sell at least 2 years from the grant date. It is critical to know if the stock options are ISO or NSO.
3) If some of your options are already partly vested, you may want to consider executing some of these options sooner rather than later.
1) In order to exercise options one must sometimes write a check to their employer i.e. they must have enough cash to actually purchase their options.
2) When exercising options, you may want to consider holding the stock greater than 1 year so as to incur favorable tax treatment, and sell at least 2 years from the grant date. It is critical to know if the stock options are ISO or NSO.
3) If some of your options are already partly vested, you may want to consider executing some of these options sooner rather than later.
4) If attaining stock, you may want to consider gradually selling stock over a period of time rather than all at once.
4) It would be extremely diligent of most people to complete a will in the USA, especially as it pertains to unexecuted stock options and stock grants.
4) It would be extremely diligent of most people to complete a will in the USA, especially as it pertains to unexecuted stock options and stock grants.
We are here to be a resource to all employees, past and present of Benefitfocus, Blackbaud, FedEx and Boeing on the above subject matter of protecting and diversifying their assets. Please feel free to Contact Us if we can be of assistance.
The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
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Hedges Wealth Management LLC - A Registered Investment Adviser
Hedges Insurance Agency LLC
Tax, Financial Planning, Investments & Insurance Advisors
1300 Appling Drive #201 | Mt Pleasant | SC 29464
T | F 704 919 5946
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