A growing share of Wasatch Front pay arrives as stock — on a schedule, with a tax bill attached, and with a quiet concentration problem nobody mentions at the offer stage.
The offer letter said "$120,000 in RSUs." What it didn't say: when it becomes taxable, why the default withholding is probably short, what the ESPP fine print is worth, or how five years of vesting quietly turns a diversified saver into a one-stock investor. Here's the field guide — educational, not advice.
I'm Ryan Hammett, an independent fiduciary in Layton who works with tech and professional households across the Salt Lake Valley and the Lehi corridor. Equity compensation is the most common thread in those conversations — and the most commonly misunderstood. Not because people aren't smart; because nobody teaches it, and the defaults are engineered for the company's convenience, not yours.
Start with the one sentence that reorganizes everything: when RSUs vest, you've been paid. The market value of the shares that vest is ordinary income on that day — it lands on your W-2 exactly as if it were salary, whether or not you sell a single share. There is no "waiting for long-term gains" on the vest itself; that clock only starts on growth after vesting.
Which exposes the default nobody questions: doing nothing. Keeping vested shares feels prudent — loyal, even. But since the tax is owed either way, holding is exactly equivalent to receiving a cash bonus and spending all of it on your employer's stock. Some people would do that deliberately, with a limit. Almost nobody would do it accidentally, forever — yet that's what "I just never sold" is.
Here's the mechanical trap: employers usually withhold RSU income at the IRS flat supplemental rate of 22%. If your household's marginal rate is 32% or higher — common for a dual-income couple with meaningful vests — every vest under-withholds by ten to fifteen points. On $150,000 of vesting income, that's a $15,000–$22,000 surprise, arriving all at once at filing time, sometimes with an underpayment penalty attached.
Employee stock purchase plans are the most underused benefit I see. A qualified Section 423 plan lets you buy company stock at up to a 15% discount, often with a lookback — the discount applies to the lower of the price at the start or end of the purchase period. In a rising stretch, the effective discount can be far better than 15%. Plans cap purchases (typically at $25,000 of stock value per year), and the tax treatment depends on how long you hold: a qualifying disposition generally requires holding two years from grant and one year from purchase.
The honest framing: the discount is close to the nearest thing compensation offers to free return — if you participate, and if the shares don't just pile up alongside your RSUs, deepening the same concentration. For many households, the pattern that works is participating fully and diversifying on a schedule, with the tax rules — not vibes — deciding the timing. Your CPA should bless the specifics.
Now zoom out. Salary from the company. Bonus from the company. RSUs vesting quarterly. ESPP purchases twice a year. Maybe options. Five years in, it is completely ordinary for a third to half of a household's net worth to depend on one ticker — the same ticker that signs the paychecks. If the company stumbles, the job and the portfolio stumble together.
It is genuinely thrilling to watch your company's stock climb. Thrilling is not a plan. The professionals who navigate this well almost all converge on the same structure:
A written limit — commonly 10–20% of investable assets in employer stock. Above the line, selling is automatic, not a debate with yourself.
Sell-at-vest (simplest, no new tax beyond the vest itself) or a calendar-based schedule. For insiders, a 10b5-1 plan makes it rule-based and defensible.
Diversified portfolio, mega-backdoor Roth if your plan allows it (the overall 2026 401(k) additions cap is $72,000), 529s, or the house fund — sold shares need somewhere purposeful to go.
Vest dates, ESPP purchase dates, estimated-payment dates, and year-end on one calendar, shared between you, your advisor, and your CPA.
Employers typically withhold RSU income at the flat 22% supplemental rate (up to $1 million), while many professional households actually owe 32–37% on that income. The shortfall becomes an April bill. The fix is anticipating it — adjusted withholding, estimated payments, or setting the gap aside at each vest.
Holding is a choice, not a default. The tax is owed at vest regardless — so ask: if this had arrived as cash, would I buy my company's stock with it? Deliberate holding with a written limit is a strategy. Accidental holding with no limit is just concentration.
A qualified plan with a 15% discount — especially with a lookback — is often one of the strongest benefits you have, within the typical $25,000-per-year limit. The discount is real return; the risks are stacking more employer stock and fumbling the qualifying-disposition tax rules. Participate, then diversify on a schedule, with your CPA on the timing.
A pre-arranged, rule-based schedule for selling company stock, established while you don't hold material non-public information. For insiders it provides an affirmative defense while diversification runs automatically. Whether you need one depends on your role and your company's trading policy — loop in your company's legal team.
Yes — this only works when the investment side and tax side agree. I build the vesting map and sell schedule; your CPA and I coordinate the estimates, elections, and year-end moves. No CPA yet? I'll tell you honestly when your situation needs one.
A free 30-minute conversation about your vesting schedule, your tax picture, and a concentration limit you can live with. No pitch — and if sell-at-vest into an index fund is honestly all you need, that's exactly what I'll say.
Schedule a Free Intro Call Nearby: Salt Lake City & the Valley · Lehi corridor? Utah CountyEducational content only. This article is provided by Kimberlite Financial Services for educational and informational purposes. It is not personalized investment, tax, or legal advice. Tax rates, withholding rules, and contribution limits change; figures reflect publicly available information as of July 2026 and may become outdated. Equity-compensation decisions have significant tax consequences — consult a qualified tax professional about your specific situation, and your company's legal or compliance team regarding any trading restrictions that apply to you.
References to employers, plans, or securities are illustrative only and are not recommendations to buy, sell, or hold any security. Kimberlite Financial Services is not affiliated with any employer mentioned or implied.
Kimberlite Financial Services, LLC (Firm CRD# 342159) is an investment adviser registered with the Utah Division of Securities. Registration does not imply a certain level of skill or training. Investing involves risk, including possible loss of principal. Past performance is not indicative of future results.