What Should You Do With Your Employee Stock?

December 9, 2019
Whether it's stock options, restricted stock, an employee stock purchase plan, or some other form of equity compensation, most companies offer this vital benefit to employees. But once you have it, what should you do with it?

Listen on Apple Podcasts, Google Podcasts, Spotify or copy to your RSS reader.

Transcript Open new window

After you listen

  • You can always call Schwab and talk to a professional at 877-279-4476.
  • You can always call Schwab and talk to a professional at 877-279-4476.

Today, many startups and most of the companies on the Fortune 500 list allow their employees to take ownership in the company through stock awards, employee stock purchase plans, stock options, or some other form of equity compensation. That's a good thing because aligning the interests of employees and owners makes sense. But employees receiving equity compensation can feel overwhelmed. The details may seem like a confusing swarm of acronyms, tax challenges, and timing decisions that can obscure the benefits of a potential windfall.

In this episode Mark talks with Amy Reback, vice president of Schwab Stock Plan Services. They discuss how equity compensation has evolved and what strategies might be best for employees holding various types of stock options or restricted stock. Mark also dives into the biases that might be preventing you from making the best decisions about your equity compensation—and how you can guard against those mistakes.

Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.

Financial Decoder is an original podcast from Charles Schwab.

If you enjoy the show, please leave us a rating or review on Apple Podcasts.

We can help you build a diverse portfolio.

Schwab Market Perspective: Downshifting

The economy has slowed amid rising inflation, aggressive monetary policy tightening and persistent global supply chain crises. In turn, the U.S. stock market has weakened.

Weekly Trader's Outlook

Bargain hunters still being thwarted.

Friday's Schwab Market Update Podcast: Markets Post Gains, but a Six-Straight Weekly Loss

U.S. equites finished the last session of a volatile week higher, but posted losses on a weekly basis for the sixth-straight time.