Not everyone wants to become an expert in equity compensation, and you don't have to. If you'd rather keep this simple, these three steps protect you from the most common and most expensive mistakes.
Find out which types of equity you have (stock options, RSUs, or shares you already own), how much has vested, and what restrictions apply to selling. Your company's equity platform and your grant agreements have the answers. Many costly decisions start with a wrong assumption about one of these.
If the terms are unfamiliar, start with our guide to the different types of equity.
Exercising options, selling shares, and deciding when to do either can change your tax bill by a large amount. Timing alone can matter. One conversation with a tax professional who works with equity compensation, before you act, is usually worth far more than it costs.
If you'd rather not manage these decisions yourself, you don't have to. You can hand ongoing management to a qualified advisor and stay as involved, or as uninvolved, as you like. Choosing not to engage deeply is a legitimate choice, not a failure.