Deferred Consideration Services Sell-Side

When Does Executive Compensation Management Become a Challenge?

At the point of an exit or major liquidity event, deferred compensation cannot be paid on the closing date. Termination events add increased complexities to eligibility, payment amounts and timing. Importantly, many companies cannot have these balances on their balance sheet or held in their name, which is a risk that Western Alliance Bank can help solve for.

Executives, founders and employees, whether they remain with the original company or join the purchasing entity, will have concerns about their deferred compensation being paid out properly and on schedule. That’s where we can help you play smart by holding the funds off the balance sheet, managing the process of determining eligibility and tracking payment events.

The Business Escrow Services Advantage

Improper management of deferred payments and related taxation can create risks, tax exposure and coordination requirements that you may not be staffed or have the expertise to manage internally.

Our proprietary platform is built specifically to handle these complexities. We help to ensure executives and employees receive timely payments for their unvested options or restricted stock considerations, allowing you to remain focused on your strategic goals.

How We Solve the Problem for You

Western Alliance Bank tailors specialized solutions for companies by:

• Centralizing vesting schedule management through an advanced platform that works to  seamlessly assist HR and finance teams in tracking trigger-events, payments and forfeited amounts.
• Help ensure tax compliance and efficient payment processing, even for executives who filed 83(b) elections or require 1099-B forms.
• Offering real-time data reporting and transparency across all departments to minimize human error and administrative burdens.
• Tailoring our approach to your company’s needs, whether handling time-based, performance-based or liquidity event-triggered compensation.