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If you're an executive living along PGA Boulevard or anywhere in the Palm Beach Gardens corridor, chances are a significant portion of your net worth is tied up in equity compensation. Between Restricted Stock Units (RSUs), Non-Qualified Deferred Compensation (NQDC) plans, and performance-based awards, your compensation structure probably looks more like a chess board than a simple paycheck.

And here's the thing: most financial advisors treat these components as afterthoughts. At Davies Wealth Management, we see them as the cornerstone of executive wealth planning.

The PGA Boulevard Executive Landscape

The stretch of PGA Boulevard from I-95 to the coast has become home to an impressive concentration of C-suite executives, senior VPs, and high-earning professionals. Many work remotely for major corporations headquartered elsewhere while enjoying Florida's tax-friendly environment. Others have relocated to lead regional operations or have retired but still hold unvested equity from their previous employers.

What unites this group? Complex compensation packages that require sophisticated planning.

According to a 2025 WorldatWork survey, approximately 72% of publicly traded companies now offer RSUs to executives, while 43% maintain some form of deferred compensation plan. For executives earning $500,000 or more, these non-salary components often represent 60-75% of total compensation.

That's not pocket change: that's your financial future wrapped up in vesting schedules, tax triggers, and corporate performance metrics.

Executive desk with laptop overlooking Florida golf course, illustrating wealth planning for PGA Boulevard executives

RSU Vesting: More Than Just "Free Money"

Let's clear up a common misconception: RSUs aren't free money. They're a promise of stock that becomes taxable income the moment it vests. And that's where most executives get tripped up.

How RSU Taxation Actually Works

When your RSUs vest, the fair market value of those shares on the vesting date is treated as ordinary income. Your employer typically withholds shares to cover federal taxes (often at a flat 22% supplemental rate for federal, plus applicable state withholding), but here's the catch: if you're a high earner, 22% isn't going to cut it.

For executives in the top federal bracket (37% in 2026), plus the 3.8% Net Investment Income Tax, you could be looking at a significant under-withholding situation come April.

Florida advantage: No state income tax on your RSU vesting. That's an immediate 5-13% savings compared to executives in states like California or New York. But only if your domicile is properly established: something we'll touch on in an upcoming post about audit-proofing your Florida residency.

Vesting Schedule Strategies

Most RSU grants follow either:

  • Cliff vesting: 100% vests after a set period (typically 3-4 years)
  • Graded vesting: Portions vest over time (e.g., 25% annually over 4 years)

The strategy here isn't just to wait and hope for the best. Smart executives plan around their vesting schedules by:

  1. Timing large deductions in years when significant RSU tranches vest
  2. Maximizing retirement contributions (401(k), mega backdoor Roth conversions) during high-income years
  3. Charitable giving strategies like Donor-Advised Funds to offset taxable income
  4. Coordinating with deferred comp distributions to smooth income across years

For a deeper dive into tax-efficient portfolio management, check out our analysis on AI vs. traditional wealth management and why personalized strategies still matter for high-net-worth portfolios.

Deferred Compensation: The Double-Edged Sword

Non-Qualified Deferred Compensation (NQDC) plans offer executives the ability to defer salary and bonuses beyond the limits of traditional 401(k) plans. In 2026, while the 401(k) contribution limit sits at $23,500 (plus $7,500 catch-up for those 50+), NQDC plans often allow deferrals of 50-80% of salary and 100% of bonuses.

Sounds great, right? Defer now, pay taxes later when you're presumably in a lower bracket.

But there's a catch: several, actually.

Balanced scale with gold coins and hourglass symbolizing the decision between immediate compensation and deferred benefits

The Risks You Need to Understand

Unsecured creditor status: Unlike a 401(k), your deferred compensation isn't held in a trust for your benefit. If your employer goes bankrupt, you're an unsecured creditor standing in line with everyone else.

Inflexible distribution elections: Under IRS Section 409A, you typically must elect your distribution timing before the year you earn the compensation. Change your mind later? Too bad. There are very limited circumstances for modification, and getting it wrong triggers a 20% penalty plus accelerated taxation.

The tax bracket gamble: You're betting that your tax rate at distribution will be lower than it is today. With the 2026 estate and income tax provisions from the Tax Cuts and Jobs Act sunsetting, that's not a certainty.

Making Deferred Comp Work For You

Despite the risks, NQDC can be a powerful tool when used strategically:

  • Bridge to retirement: Structure distributions to begin at retirement and provide income before pension benefits or Social Security kick in
  • Legacy planning: Some plans allow lump-sum payments to beneficiaries, which can be coordinated with estate planning strategies
  • Tax smoothing: Spread distributions across multiple years to avoid bracket creep

Tax Planning Strategies for Florida Executives

Living in Florida gives you a significant advantage: but only if you're maximizing it. Here are the key strategies we implement for executives along PGA Boulevard:

Concentrated Stock Risk Management

If your RSUs vest into a single company's stock (your employer), you likely have a concentration problem. We typically recommend reducing single-stock positions to no more than 10-15% of your total portfolio.

Strategies include:

  • 10b5-1 trading plans for systematic diversification
  • Exchange funds (for qualifying investors)
  • Charitable remainder trusts for highly appreciated positions

Roth Conversion Opportunities

In years when you have lower RSU vesting or deferred comp distributions, consider Roth conversions to take advantage of lower brackets. This is especially relevant if you're between high-income W-2 years and the start of required minimum distributions.

Quarterly Tax Projections

At Davies Wealth Management, we run quarterly tax projections for our executive clients. RSU vesting dates, estimated company performance, and deferred comp elections all factor into these projections. No one should face a surprise six-figure tax bill in April.

Modern office with financial documents and Florida coastal view, highlighting strategic executive wealth management

Coordinating RSUs and Deferred Comp for Maximum Impact

The real magic happens when you coordinate all the moving pieces. Here's a simplified framework we use with clients:

Year RSU Vesting Deferred Comp Election Strategy
High vesting year Large tranche Defer 50%+ of bonus Reduce current-year taxable income
Low vesting year Minimal Take distributions Fill lower brackets
Pre-retirement Accelerating Reduce new deferrals Begin transition planning
Retirement Complete Structured payouts Coordinate with Social Security & RMDs

This isn't a one-size-fits-all approach. Your specific situation: company stock outlook, other income sources, retirement timeline, and family circumstances: all influence the optimal strategy.

The Davies Wealth Management Approach

We work with executives across Palm Beach County who face exactly these challenges. Our approach is straightforward:

  1. Comprehensive compensation analysis: We map out every RSU grant, option, and deferred comp election to create a multi-year income projection
  2. Tax-aware portfolio management: Daily tax-loss harvesting at the security level, not just quarterly rebalancing
  3. Coordinated planning: Your investment strategy, tax planning, and estate plan should all work together: not operate in silos

For more insights on executive compensation and wealth building, tune into our podcast at www.1715tcf.com where we regularly break down complex financial topics for high-net-worth individuals.

Your Next Steps

If you're an executive in the PGA Boulevard area holding significant RSU grants or participating in a deferred compensation plan, now is the time for a comprehensive review. With potential tax changes on the horizon in 2026 and beyond, the decisions you make today will impact your wealth for decades.

Start by using our estate planning tool to assess where you stand, then reach out to discuss how Davies Wealth Management can help you navigate the complexities of executive compensation with confidence.

Your compensation package is sophisticated. Your financial planning should be too.