Equity Compensation

This page covers the following location(s) in NaviPlan:

Enter Financial Data - Net Worth - Equity Compensation

Enter Financial Data - Net Worth - Equity Compensation - Stock Options Details

Enter Financial Data - Net Worth - Equity Compensation - Restricted Stock Details

Planning Objectives :: Procedures :: Related Information

Planning Objectives

How does NaviPlan define equity compensation?

• The term equity compensation refers to compensatory stock options and not the trading of stocks. A stock option gives the individual the right to purchase a set number of shares at a fixed price at some point in the future.
• In NaviPlan, clients can own stock options individually or jointly (however, dependents cannot). You can enter all your clients' compensatory stock options on this page.
  Note: In order to use any of the options/features on this page you must enable the Equity Compensation module from the Modules page.

Procedures

How do I enter stock options?

1. Select the for Add Stock Options and select either Non-Qualified Stock Option or Incentive Stock Option.
2. Enter data for all required fields.
3. From the Asset Class Weightings list on the Return Rates tab, define asset classification for the stock option in one of the following ways:
   • Select an asset class from the list if the account is fully weighted in a single asset class.
   • If the account is weighted in multiple asset classes, select Manual Classification from the Asset Class Weightings menu and assign percentage values to each component asset classification until the total percentage equals 100%.
4. If you will not be using the return rate associated with the selected asset class, select Override and enter your custom return rate values.
5. Go to the Vesting and Expiry tab and define when the stock options will vest and when they will expire.
6. Go to the Exercise Schedule tab and specify when the stock options will be exercised by entering an event or date. Then, enter any details regarding the exercise.
7. When you are satisfied with these options, click OK.

How do I enter restricted stock?

1. From the Equity Compensation page, select Add Restricted Stock.
2. Enter data for all required fields.
3. From the Asset Class Weightings list on the Return Rates tab, define asset classification for the stock option in one of the following ways:
   1. Select an asset class from the list if the account is fully weighted in a single asset class.
   2. If the account is weighted in multiple asset classes, select Manual Classification from the Asset Class Weightings menu and assign percentage values to each component asset classification until the total percentage equals 100%.
4. If you will not be using the return rate associated with the selected asset class, select Override and enter your custom return rate values.
5. Go to the Vesting and Expiry tab and define when the stock options will vest and when they will expire.
6. When you are satisfied with these options, click OK.

Related Information

• Assets & Liabilities
• Accounts
• Annuities
• Asset Class Weightings

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