Most RSU sell-to-cover release processes use a pre-defined Fair Market Value (FMV) - typically prior day close - to determine the number of shares to sell or withhold on the release day to cover the employee tax liability. Each process can impact employees because they “own” the shares at a higher price than the shares were sold for taxes, and the sale triggers short term capital losses. In this session we’ll go over the variety of solutions ranging from directly working with broker representatives, selecting a better FMV to use, switching to withhold to cover, and using real time market pricing to selling shares in waves and highlight benefits and disadvantages to each process.
Presenters:
Tim Oakes, Baker Tilly (Principal)
Since 1996, Tim has developed technology systems and applications to help companies manage employee human relations, compensation, and equity compensation processes. Tim has experience managing and conducting all aspects of system development projects, including business justification and requirements, business process design, development and testing, production rollout and implementation, system stabilization, and ongoing enhancements. His strong application development background is complemented by his deep business consulting experience.
Anthony Cali, Baker Tilly (Senior Manager)
Anthony has provided consulting services in application development, data analytics, and risk assurance since 2014. He focuses on delivering leading-edge technology solutions for clients across a variety of industries, and has experience in agile software development, relational databases, analytics, stock-based compensation, business process analysis/design, and leading high performing teams. Anthony has dedicated his time to developing and maintaining a world-class equity management system for one of the firm’s largest clients.