Sell-to-Cover Wave Sale Platform
Discover how our automated Sell-to-Cover Wave Sale Platform can help companies elevate their equity compensation plan and RSU vesting process.
Sell-to-Cover Wave Sale Platform
Taxation is one of the most complex and confusing aspects of equity compensation for employees. Traditional methods use a specific fair market value (FMV) to estimate tax withholding which can result in significant short-term capital gains or losses, prompt employee complaints regarding tax treatment at vest and result in administrative burdens for stock plan administrators.
Using an average sale price as the FMV vesting price for tax and reporting purposes can better align tax outcomes with participant expectations. Seamlessly integrate this restricted stock vesting method with our automated Sell-to-Cover Wave Sale Platform to create a compensation plan that fully realizes better employee outcomes and improves the value delivered through the restricted stock unit (RSU) program.
Discover how our Sell-to-Cover Wave Sale Platform can help companies deliver on participant expectations, reduce administration headaches and improve employee’s equity value, reducing capital gain/loss surprises, and transforming equity administration into a strategic business advantage.
Elevate your vesting process
Our Sell-to-Cover Wave Sale Platform is a future-focused addition to stock administration and broker ecosystems, managing real-time data flows, automating key sell-to-cover trading, and reporting tasks, bringing the entire vesting process forward and positioning it for ongoing success.
Deliver accurate withholding
Taxes are calculated and withheld using the participants’ actual average sale proceeds — instead of a set FMV like a prior day close — increasing fairness and accuracy while realizing significant savings for the company.
Reduce capital gains/losses
The average sales method reduces the likelihood of undesirable short-term capital gains or losses triggered by existing FMV methodologies and helps mitigate wash sale implications that can arise from closely timed repurchases.
Facilitate employee clarity
Clear and intuitive processing leads to increased employee understanding, resulting in fewer support requests and a more efficient administrative process for stock plan teams.
Realize greater retained value
By using an accurate, real-time FMV, precise shares are sold to cover taxes — often resulting in more post-tax shares retained by the employee.
Boost company trust
Aligning sales proceeds and tax obligations helps employees better understand the vesting process, reducing confusion and fostering greater trust in the company.
Innovative technology-based solution
Our deep equity compensation and technology expertise allows us to build a platform for employers to elevate their equity compensation plan experience and outcomes.
- Seamless integration. Our cloud-based software platform can be closely integrated with other internal and external systems and is designed to streamline the restricted stock sell-to-cover process.
- Unique vesting methodology. The platform leverages our unique wave sale methodology which sells restricted stock shares in coordinated waves throughout the vesting day to capture real-time market prices.
- Precise withholding and reporting. The platform is designed to generate a weighted average sale price that is used for precise tax withholding and reporting, eliminating reliance on outdated FMV estimates.
- Customizable environment. The platform can be aligned to your company’s specific needs with customizations that support mobility tax and payroll systems, international transactions and US tax requirements, and associated reporting requirements.
- Accessible user interface. The platform has an easy-to-learn interface making user adoption quick, efficient, and with minimal disruption to daily activities.
April 16 Webinar – Rethinking Sell-To-Cover: A Smarter Approach to Equity Taxes
Discover a new approach to sell-to-cover strategies that leverage real-time weighted average sale prices to retain more value from restricted stock releases.
Deep equity experience and technology leadership
Deeply immersed in equity compensation, our professionals have extensive knowledge of the operations associated with equity compensation plans. Our team seamlessly combines industry expertise with technology-driven solutions to resolve equity management challenges for companies of all sizes.
Our equity professionals and technology specialists work together to deliver innovative solutions that simplify operations, improve financial reporting, and elevate participant experiences. Our team assesses current practices against industry best practices, ensuring compliance and strategic alignment with evolving standards.
Our one-firm approach allows your organization to tap into the full resources of our firm, integrating guidance and solutions related to other integral support areas including finance, tax, and audit concerns, as well as comprehensive public company, digital advisory, and restricted stock sell-to-cover services.
Primary contact
