Most of my wealth is tied up in my company's shares. And that keeps me up at night.
That was how Pablo described his situation when he came to Quality Finance.
Pablo, 45. Head of Technology. Barcelona.
He has spent 12 years at a technology company listed on the stock exchange. Over the years he has accumulated shares and stock options that now represent over 70% of his total net worth: approximately €850,000 in company shares.
The problem is simple: if the company does badly, so does he. And he knows it.
His situation when he came to Quality Finance:
"I've spent 12 years building this wealth. The last thing I want is to lose it because I didn't diversify in time."
What we did together
1. We assessed the real risk of the concentration
We calculated what would happen to his net worth in different scenarios: a 30%, 50% and 70% drop in the share price. The numbers were uncomfortable — but necessary to make decisions.
2. We designed a gradual divestment plan
Selling everything at once triggers a massive tax bill. We designed a phased sales calendar over 3 years to spread the income tax impact and avoid jumping unnecessarily into higher tax brackets.
3. We planned the exercise of the stock options
The timing and structure of exercising stock options has significant tax implications. We analysed when to exercise them and whether it made sense to sell the resulting shares immediately or hold them for a period.
4. We built a parallel diversified portfolio
As Pablo gradually divested from the company, the freed capital was reinvested into a globally diversified portfolio of investment funds. No correlation with his employer. No concentration of risk.
Over 3 years, Pablo went from 70% concentration in a single company to 25%. His net worth is practically the same — but the risk he is taking on is radically lower.
All case details have been modified to protect privacy. Presented for informational purposes only.