THOUGHTS ON CIRCLE’S EQUITY COMPENSATION PROGRAM

Understanding the Restricted Stock Unit Program at Circle and how to plan around it

I recently had the opportunity to learn more about Circle and its Restricted Stock Unit program. As a result, I thought it would be valuable to share some initial thoughts on the program and how it may fit into the financial plans of Circle employees.

First, I want to touch on some considerations around the company’s restricted stock program. Given that Circle only recently went public on June 5, 2025, at $31, this is not about making specific recommendations on what to do with the stock. Instead, these are high-level ideas intended to help frame the conversation and highlight areas that may be worth further exploration.

In my work, I view decisions like these through the lens of a comprehensive financial plan, guided by the framework I outline in my book, 5 Steps to Retirement Planning. That framework includes investment planning, tax planning, financial planning, estate planning, and lifestyle planning. Each of these areas plays a role in how equity compensation should be evaluated and integrated into a broader strategy.

These thoughts are simply a starting point. Every situation is unique, and it’s important to

evaluate these ideas in the context of your own financial goals, risk tolerance, and long-term objectives.

Let’s get started.

Equity compensation

Equity compensation has become one of the most powerful ways technology companies reward and retain talent. Employees at companies like Circle may receive restricted stock units (RSUs) as part of their compensation package.

While equity compensation can help create wealth, it also introduces complexity. Taxes, concentration risk, liquidity decisions, and long-term planning all play a role in turning equity compensation into lasting financial security.

Restricted Stock Units

Restricted Stock Units are a form of equity compensation that grants employees the right to receive company shares after certain conditions are met and can be time-based or performance based.

In a typical program, employees are awarded a certain number of RSUs on the grant date. The shares then vest over time. When shares vest, their market value becomes taxable as ordinary income. Once vested, employees can typically sell or hold the shares depending on trading windows and company policies. For employees of a growing fintech company like Circle, RSUs can represent a large portion of total wealth accumulation, which makes thoughtful planning critical.

Applying the 5 Steps to Retirement Planning process to Circles RSU program

1. Investment Planning

The biggest risk with stock compensation is concentration risk. Employees naturally accumulate exposure to their employer through salary, bonuses, RSUs and stock options. If too much wealth is tied to a single company, volatility in that stock can significantly impact long-term financial security. Key investment considerations include paying attention to how much of your net worth is tied to a single company, having a plan to reduce exposure if that concentration becomes too high, and ensuring all your investments align with your retirement goals. I recommend paying particular attention to your asset allocation, specifically your stock to bond mix and making sure it aligns with your long-term objectives.

2. Tax Planning

RSUs are taxed differently than many other investments. When RSUs vest, the fair market value is taxed as ordinary income. The company typically withholds shares for taxes. Future gains are taxed as capital gains. Planning opportunities may include managing tax brackets such as timing sales to avoid pushing income into higher brackets and implementing capital gains strategies. These strategies include holding shares long enough to qualify for long-term capital gains treatment and selecting specific tax lots that may provide the greatest benefit each year, such as those with unrealized losses. Because RSU vesting can significantly increase annual income, proactive tax planning can potentially result in substantial savings over time.

3. Financial Planning

Restricted Stock Units can play a major role in your broader financial goals. Employees may use stock compensation to fund home purchases, a college education, reduce debt or to fund retirement savings. You should consider how your RSU’s can help with your overall financial plan. When we work with clients, we provide a written financial plan that addresses areas such as their cash flow, emergency reserves and retirement readiness. A well-structured plan integrates RSU’s into a broader financial strategy rather than treating it as isolated compensation.

4. Estate Planning

As equity compensation grows in value, it can become an important part of your estate strategy. You are never too young to begin estate planning. Key considerations may include creating a will or revocable trust to ensure your wealth is transferred according to your wishes, as well as implementing gifting strategies and other tax-efficient wealth transfer techniques. You should also consider establishing essential documents such as a power of attorney and a living will. Make sure to keep your beneficiary designations up to date. Please consult with an estate planning attorney if you have any questions regarding your estate plan.

5. Lifestyle Planning

The final step is often overlooked but may be the most important. Lifestyle planning focuses on aligning your financial resources with your personal goals and life priorities. Common questions include: When can I achieve financial independence? What role does work play in my long-term goals? You should be intentional about your long-term plans. Look beyond work and consider factors such as planning for healthcare expenses, being thoughtful about how you will spend your time in retirement, and making an effort to stay connected with friends and family.

Conclusion

Restricted stock unit programs can be incredibly valuable. For employees at innovative fintech companies like Circle, equity compensation can become a powerful driver of long-term wealth. However, the key is turning stock compensation into a comprehensive strategy.

If you receive restricted stock or equity compensation, it may be worth reviewing how it fits into your broader retirement strategy. I help professionals evaluate their financial plan across five key areas: investments, taxes, income planning, estate planning, and lifestyle planning. If you would like a complimentary review of your retirement strategy, you can email me at louis.green@savvyadvisors.com, call me at (917) 590-0552 or schedule a conversation here:

https://calendly.com/louis-green-savvy/book-a-meeting-with-louis-green

A thoughtful plan today can help ensure that equity compensation becomes not just income but lasting financial security.

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About Louis Green, CFA®, CFP®

Louis is dedicated to helping his clients solve the financial puzzle of their lives. He focuses on long-term planning and comprehensive wealth management for professionals, business executives and retirees. Louis incorporates the lessons of behavioral finance into his work. He believes that by avoiding emotional mistakes, particularly during times of financial upheaval, clients can be better positioned to achieve their goals. Louis’s approach to wealth management seeks to address each client’s day-to-day liquidity needs, retirement income goals, and the longer-term legacy they wish to create.

Louis is the author of the book 5 Steps To Retirement Planning. In his book he covers the fundamentals of investments, financial planning, tax planning, estate planning & lifestyle planning.

He has earned advanced certifications including the Chartered Financial Analyst®, Certified Financial Planner™ and the Chartered Retirement Plan Specialist® designations. This training enables Louis to provide sound advice in many areas, including cash flow management, investment management, retirement planning, trust and estate planning, and tax mitigation.

Louis has over 25 years of experience in wealth management at organizations such as Deutsche Bank, PNC Bank and UBS Financial Services. Louis founded Prestiq Wealth and joined Savvy Wealth in 2024.

‍Louis earned his M.B.A. in Finance at the Zicklin School of Business, Baruch College – B.A., his BA in English at St. Francis College, Brooklyn, NY

Louis also is involved with the Savvy Ladies organization where he provides free financial education to help women feel secure in their financial future.

Louis lives in Brooklyn and enjoys watching local sports teams and taking in everything Brooklyn and New York City has to offer.

Louis serves as a Fiduciary in his work with clients.

Louis Green is an investment advisor representative registered with Savvy Advisors, Inc. (“Savvy”).  All investment advisory services offered by Louis Green are offered through Savvy. Prestiq Wealth is an independent marketing brand name used by Louis Green for advertising and marketing purposes only. Prestiq Wealth and Savvy are not related or affiliated. 

This material is for informational purposes only and should not be considered legal or tax advice. You should consult with a qualified legal or tax professional regarding your specific situation