4 Potential Problems with Equity Compensation, and How to Solve Them

Anyone who receives stock options, restricted stock units or other forms of equity compensation needs to understand how they work and how they are taxed. Otherwise, you could miss out on a great opportunity, or get hit with a surprise bill.

A man in office attire is weighed down by a stack of $100 bills.
(Image credit: Getty Images)

Non-cash compensation might not sound like a very good deal for you as an employee — but depending on the type, it can actually provide quite a boost to your net worth over time. Equity compensation is a type of “non-cash” comp that your company may provide, but that doesn’t mean it doesn’t have value.

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Paul V. Sydlansky, CFP
Founder, Lake Road Advisors, LLC

Paul Sydlansky, founder of Lake Road Advisors LLC, has worked in the financial services industry for over 20 years. Prior to founding Lake Road Advisors, Paul worked as relationship manager for a Registered Investment Adviser. Previously, Paul worked at Morgan Stanley in New York City for 13 years. Paul is a CERTIFIED FINANCIAL PLANNER™ and a member of the National Association of Personal Financial Advisors (NAPFA) and the XY Planning Network (XYPN). In 2018 he was named to Investopedia's Top 100 Financial Advisors list.