Frequently asked questions
What does an equity compensation specialist do that a regular advisor doesn’t?
Most advisors start with your investment portfolio. An equity compensation specialist starts with the documents that govern your awards, such as the stock plan, grant agreements and deal terms. Those decide what you’ll receive, when, and how it’s taxed, and the rules differ by award type. RSUs and restricted stock, incentive and non-qualified stock options (ISOs and NSOs), ESPP shares and performance awards each vest and are taxed differently. PE-backed companies sometimes use profits interests, incentive units and rollover equity, which can involve complicated vesting structures and unfamiliar tax treatment.
When should I reach out: before or after a liquidity event?
Before, when possible. Decisions about exercising, withholding and timing often have to be made before an acquisition closes or a lockup ends, and some can't be undone afterward.
Does Massachusetts tax affect equity compensation decisions?
Often. Massachusetts adds a 4% surtax on taxable income above a threshold, originally $1 million in 2023, that rises with inflation each year. The same threshold applies whether you file single or jointly. A large vest, option exercise, share sale or acquisition payout can push a household over that line in a single year, and employer withholding usually won’t catch all of it.
Do you work with clients outside Massachusetts?
Yes. Paceline is based in Boston and works with clients nationwide on a remote basis.
Do you work with my CPA and attorney?
Yes. Many clients already have advisors they trust, and we’re glad to work alongside them. Paceline leads the planning behind equity decisions and stays in touch with your CPA before and after each one, so your CPA has the full picture when calculating and preparing your taxes. We also work with estate attorneys to make sure plans are actually put in place. Once you’re a client, we can introduce you to professionals in our network.
How is Paceline paid?
Paceline charges an assets-under-management fee of 1% per year or less, depending on account size. The fee applies only to accounts we directly manage (not employer stock) and is deducted from those accounts quarterly, so there's no separate bill to pay. This is a fee-only relationship: no commissions, no product sales.
We work on an ongoing basis because decisions about equity compensation are never standalone. Every share you sell becomes cash that has to go somewhere, whether into the rest of your portfolio, toward taxes, or toward your goals. Managing it as one portfolio lets us reduce the concentration and build what replaces it at the same time.
Do you have an account minimum?
Paceline doesn’t set a fixed account minimum. We’re focused on where you’re headed, not just where you are today. Equity compensation can change your financial picture quickly, through an RSU vest, an acquisition or an IPO, and the best planning opportunities often come up to a year before that happens. If you’re not sure your situation is a fit, an intro call is the quickest way to find out.
