Masters in Business At The Money: Buying into the Ownership Society
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Aug 27, 2025 
Joey Fishman, an equity compensation expert at Ritholtz Wealth Management, delves into the dynamic world of equity-based compensation. He discusses how shifting from cash to equity can transform personal wealth and highlights the nuances of tax implications associated with this move. The conversation covers Qualified Small Business Stock, potential tax-free gains, and the importance of proper planning in navigating the ownership society. Fishman emphasizes how understanding these strategies can lead to significant financial opportunities and stability.
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Performance Stock Units Replace Reckless Grants
- Executive pay often adds performance-based stock units (PSUs) to link grants to measurable targets.
- Firms now prefer PSUs over automatic annual share grants to enforce accountability.
Pay Appreciation, Not Shares
- Stock appreciation rights (SARs) pay the increase in value rather than issuing actual shares.
- SARs avoid upfront purchase but deliver the economic gain between grant and later value.
Winners Are Extremely Rare
- Only a tiny fraction of stocks drive most market returns and most employees sell shares right after vesting.
- Hitting a lottery-like outcome requires early joining, long tenure, timely exercise, and a liquidity event.