There are 1000s of wealth managers trying to get millions of employees holding employee stock options to manage these grants in a manner which benefits the wealth managers and the company/employer and works counter to the interests of the employee, manager or executive.
That manner is the naive strategy of "early exercise, sell stock and diversify the residual amounts". When used, it subjects the wealth manager to lawsuit for violating their fiduciary duty and violation of SEC Rule 10 b-5.
The promoters exaggerate the merits of diversifying and understate the penalties from early exercise. They also pull off their strategy when the risks are lower that earlier when the risks were higher.
The only efficient way to manage grants of ESOs is to sell exchange traded calls or buy puts to a lesser degree. And that is the view of the foremost options experts in the world.
I would be happy to explain the contentions above to anyone interested.
John Olagues
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