Job changes, for many, just come with the territory.

This is especially true for executive and sales based positions in several industries – we see it often with many of the pharmaceutical executives we work with. Their careers often involve rapid moves up the corporate ladder and transitions between companies.

To be clear, career progression is without a doubt a positive thing. But these frequent job changes also create financial planning challenges, mainly because an executive’s compensation and benefits package often looks quite different with each move.

With base salaries, bonuses, stock options and other incentives, compensation at a new company can be complex to evaluate and compare. The compensation structure is usually not a stable, predictable amount either. Bonuses and stock options make up 25% to 75% of total pay for many executives. This variable income fluctuates dramatically between years.

When transitioning between jobs, mishandling assets like 401(k) accounts, stock options, and restricted stock units can lead to lost wealth. Taxes related to equity compensation and bonuses can also become incredibly complex to navigate without savvy planning.

In addition, with income going up and down so frequently, it becomes difficult for executives to assess if they are on track for retirement and other long-term goals.

This is where a financial advisor who understands these situations can provide tremendous value. They can help executives:

  • Analyze and compare job offers to optimize compensation and benefits.
  • Manage variable income flows and smooth out cash flow.
  • Properly transition key assets like 401(k)s and stock options.
  • Minimize taxes on all forms of compensation.
  • Evaluate career earnings to date and map out retirement and wealth management strategies.

A financial advisor equipped with expertise in the executive space can help executives confidently navigate the twists and turns of their financial life. With professional guidance, executives are empowered to maximize their lifetime earnings potential while building their wealth for the future.

Have questions about executive financial planning?  Reach out to us today to see if we are a good fit to help you.


Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRASIPC.