Corporate CPR Episode 57: Retaining Employees While Preparing for IPO

October 19, 2022

On today’s show, we discuss how companies can prepare for IPO and ensure their employees benefit.

As an attorney, a CPA, and a CFP®, Aaron Rubin runs a wealth management practice that integrates tax, financial planning and investing. Aaron helps his client minimize

their tax liability and keep more of their equity compensation so they can support the people they love and the causes they care about most. Whether in Silicon Valley, Austin, or the Tech Triangle, he works with pre-IPO executives and early employees at late-state tech companies.

Aaron received his BA in Economics-Accounting-Spanish Literature from Claremont McKenna College, and his Juris Doctorate from the University of Illinois. He formerly worked in Deloitte’s Private Client Advisory Department and spent three years in public accounting working on individuals, trusts, and estates before switching over to wealth management. He became a CPA in 2008, and a CFP® in 2010. In 2019, Aaron published his first book “Financial Adulting’’ as a guide to help young professionals navigate tax, investment, and estate planning.

He lives in the San Francisco Bay Area with his wife, three daughters, two goldendoodles, and five chickens.

Key Takeaways:

Equity compensation is really important both to attract talent and to retain employees.

Recommendations for employers:

  • Allow early exercise for employees.
  • Use a 10b5-1 plan, which is a non-discretionary plan to sell your stock if you’re in a black-out window.
  • Educate your employees about the potential benefits for them.
  • Younger companies can move stock early into different trusts.
  • Younger companies can do what’s called RSAs. Can do an 83b election, which is taxed early when lower priced.

Recommendations for employees:

  • Seek a competent attorney to help negotiate your stock compensation package.
  • Seek out great tax advice.
  • Employees are advised to sell vested stock to be able to diversify.

Connect with Aaron Rubin




Twitter: @WRPWEalth

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