Year-End Planning for Executives: Strategies to Optimize Incentives, Personal Finances, and Taxes

As the year winds down, executives should proactively align long-term incentive plans, personal financial goals, and income tax strategies to help start 2026 from a position of strength.

Here are four key questions in each area that we encourage executives to consider now:

1. Long-Term Incentive Planning

For many executives, long-term incentive (LTI) awards—such as RSUs, performance shares, or stock options—represent the largest portion of total compensation. These awards create wealth opportunities but can also trigger significant tax consequences if not managed carefully.

Ask Yourself:

• Have I reviewed vesting schedules and expiration dates, especially for in-the-money options?
• Are any performance-based awards likely to vest based on year-end results?
• Have I run tax projections for upcoming option exercises or vesting events?
• Am I coordinating with compliance and legal teams to help ensure stock activity aligns with trading windows and company policies?

Unique Insight:
If you plan to exercise options or sell stock in the next 6–12 months, consider establishing or updating a Rule 10b5-1 trading plan before year-end. A pre-established plan allows trading during blackout periods or when you might possess material nonpublic information, while staying fully compliant with SEC rules. This strategy provides flexibility and confidence when managing equity transactions.

2. Financial Planning

Year-end is an ideal time to review personal finances and make adjustments.

Consider:

• Am I overexposed to company stock, and should I explore diversification strategies such as a 10b5-1 trading plan?
• Have my goals, time horizon, or risk tolerance changed due to life events or market shifts?
• Do I have sufficient liquidity set aside for next year’s tax liabilities, major expenses, or philanthropic goals?
• Am I strategically using my company’s deferred compensation plan to manage income and reduce taxes?

Unique Insight:
A well-structured nonqualified deferred compensation (NQDC) plan can be a powerful tax and cash flow tool when used intentionally. Deferring income to lower-tax years—such as retirement years—can reduce overall tax liability while aligning cash flow with future spending. It can also bridge income gaps before Social Security or pension benefits begin.

3. Income Tax Strategy

High earners face a complex tax environment. Year-end presents opportunities to reduce liability and improve efficiency.

Ask Yourself:

• Should I defer or accelerate income based on projected tax brackets this year versus next?
• Can I harvest capital losses to offset gains, especially after a volatile year?
• Have I maximized retirement plan contributions, including mega backdoor Roth contributions, and considered charitable giving strategies such as donor-advised funds?
• Am I leveraging state income tax planning, particularly if I plan to relocate or work remotely across states?

Unique Insight:
Executives living or working in multiple states, especially high-tax states like California or New York, can plan residency strategically. Timing a move or working remotely from a no-income-tax state for part of the year may yield meaningful tax savings, particularly around liquidity events or bonuses.

Final Thought

Focusing on personal financial health at year-end can create lasting advantages for you and your family.

At Savant, we work with senior leaders to integrate long-term incentive planning, investment management, and tax strategy into a cohesive, forward-looking plan. If you’d like to explore how these strategies might apply to your situation, we’re here to help.

Matthew P. Witter Financial Advisor CFP®, CEP, ChFC®, AIF®

Matt specializes in guiding senior level executives of public companies toward personal financial peace of mind. More specifically, he helps manage the complexities of their stock-based compensation.