Executive DecisionsExecutive Decisions
Corporate executives who amass large amounts of company stock face some unique wealth-transfer challenges and opportunities. Large holdings of a single stock are inherently risky because stock is a volatile asset class that can lose all its value. However, single stocks lend themselves to certain wealth-transfer strategies and can help executives build legacies for gifts to charities and to heirs.
Richard L.N. Weaver & Gregory D. Singer
Corporate executives who amass large amounts of company stock face some unique wealth-transfer challenges — and opportunities. Large holdings of a single stock are inherently risky because stock is a volatile asset class that can lose all its value. However, single stocks lend themselves to certain wealth-transfer strategies and can help executives build legacies for gifts to charities and to heirs.
Nevertheless, single stocks come with extra risks attached. To address the risk of single stock concentration, without needlessly diminishing the potential reward, we apply a “core and excess capital” framework. Core capital is the amount your client needs to support his lifestyle for the rest of his life...
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