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Adopt glide path to a diversified portfolio

In the case of many senior-level executives, their employer company's shares at times account for 40-90 per cent of the portfolio, making it extremely concentrated

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Harsh Roongta
The relentless rise in equity markets over the past few years, coupled with the increasing use of stock options to compensate corporate executives, has given rise to a new phenomenon. Many mid- to senior-level corporate executives have become very wealthy even by global standards due to the options or shares held by them in their employer companies.
 
While this is a great place to be in, it also leads to problems. The value of their employer company’s shares becomes a major component of their wealth. Some keep getting additional option allocations every year. This means the value of their
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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