Case Study: Biotech Executive's RSU & ISO Diversification Plan

A rules-based, tax-smart approach to reducing concentrated stock and funding charitable goals.

CAMERON'S STORY

Cameron, a VP at a publicly traded biotech in Greater Boston, built a significant position in company stock through RSUs and ISOs.

He had questions running through his mind that prevented him from taking action: What if I sell a big block of shares now and regret it? What if I wait and the stock drops or a blackout window traps me? What if exercising ISOs triggers AMT? What's the best way to pay for my kids' college? What if I want to fund a donor-advised fund—this year or next? 

When he came to Sachetta, we helped him implement a staged, rules-based diversification schedule tied to vest windows—supported by rolling multi-year tax projections and a high-income-year DAF plan—that brought structure and calm. Quarterly blackout windows and compliance notices shaped the trading calendar. His risk declined, taxes were managed, college saving and legacy giving were purposeful, and each vest arrived with a clear next step, not a scramble.
VP reviewing RSU diversification and donor-advised fund plan.

CAMERON'S PLAN

Sachetta created a staged, multi-year plan tied to liquidity events and tax efficiency.

  1. Diversification schedule: A 10b5-1 plan was drafted with built-in decision checkpoints. Sales were spaced to reduce concentration risk and tax exposure. 

  2. Education funding (flexible by design). We considered the possible investment vehicles and added an “education set-aside” to the vesting playbook. 

  3. Charitable giving design: A donor-advised fund strategy was structured for a high-income year, using appreciated stock to maximize deduction and impact.

  4. Tax projection and execution: A rolling multi-year projection was built, updated annually, to guide decisions with clarity—not guesswork.

ACTIONS IN THE FIRST 90 DAYS

The first 90 days focused on mapping the equity picture, formalizing a staged plan, and coordinating tax and legal steps.

  • Collected equity grant history and modeled vesting scenarios

  • Built and documented a staged sales and gifting plan

  • Created AMT, NIIT, and state tax projections

  • Set per-child education targets; add an education set-aside to the vest allocation.

  • Opened and funded a DAF with appreciated stock

  • Coordinated plan with tax and legal advisors

RESULTS

Risk was reduced. Taxes were managed. College savings were planned. Giving was purposeful. Every vest came with a plan—not panic.

WHAT'S YOUR STORY?

If this story feels familiar, a coordinated plan would likely focus on similar priorities—paced decisions, tax-aware timing, and clear next steps.

  • Reduce risk without losing control

  • Fund education and giving goals in high-income years

  • Spread sales to avoid tax spikes

  • Use tax modeling to guide—not react

  • Get a documented plan and structured cadence
Biotech executive reviewing an education-funding cadence for two children tied to RSU vesting.

 

 

 

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Biotech executive reviewing 10b5-1 plan and RSU diversification schedule

Behind every financial plan is a real life—full of deadlines, family goals, and important decisions. This story reflects the kinds of challenges our clients bring to us, and how we build calm, clear strategies in response. While this story is fictional, the strategies are true to life.

Disclaimer: Action plans and results are shown for illustrative purposes only, are not indicative of any specific Sachetta client, and will vary based on each client’s individual circumstances and objectives.

Last updated September 2, 2025.