The Inside Press

Magazines serving the communities of Northern Westchester

Equity

“I Have a Dream”: In New Castle, a Poignant Celebration of Dr. Martin Luther King Jr. and Black History Month

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A Welcoming Gathering, a Peace March of Hundreds, Bronx Bethany’s Chosen Choir and an Animated Panel of Esteemed Speakers Signify the Beginning of a Meaningful Conversation in New Castle and Beyond

On Sunday January 29th, residents of New Castle and neighboring communities joined for “I Have a Dream”: A Celebration of Dr. Martin Luther King Jr. and Black History Month, a peace march and program at the Chappaqua Library organized by the Town of New Castle Committee on Race, Equity, and Inclusion (CREI) in partnership with the Chappaqua PTA, the PTA Diversity, Race, and Belonging committee, the Chappaqua Library, the Horace Greeley High School BIPOC Student Union (BSU), and New Castle United for Youth.

The peace march and gathering beforehand allowed participants an opportunity to demonstrate community solidarity and connect with neighbors. Chappaqua PTA President Tara Ramirez kicked off the event with her remarks in front of Scattered Books bookstore, by the peace pole which bears the message ‘May Peace Prevail on Earth’ in several languages. Attendees of all ages also had the opportunity to share their messages of peace and hope on a peace board. High school students Mariam Cisse and Emma Ramirez joined to perform the Black National Anthem, “Lift Every Voice and Sing,” before more than a hundred participants walked together, some linked arm-in-arm, to the town library.

The program at the library featured a panel discussion based on excerpts of Dr. King’s ‘I Have a Dream’ speech, reckoning with our nation and community’s progress toward social justice in the intervening years since that speech was delivered. Panelists included local residents, students, and leaders. The discussion spanned the experience of discrimination by students of color at the high school, commentary on national and local political discourse around diversity and equity, and the importance of continuing to educate others on the realities and harm caused by racism in our own town.

Top photo:  CREI committee member Porfirio Gonzowitz at the lectern, and panelists (left to right): Joyce Chen, Horace Greeley Senior; Mariam Cisse, Horace Greeley Senior; Tonya Wilson, principal of Roaring Brook elementary school; Gavrie Elliott, graduate of Horace Greeley High School and current NYU Tisch School of the Arts student (’24); Ralph Carter, New Castle resident, parent, and lawyer; Mondaire Jones, CNN political commentator, a commissioner on the U.S. Commission on Civil Rights, and former congressman representing New Castle’s district. Bottom photos: Supurna Banerjee, CREI co-chair (in yellow) delivering opening remarks. CREI committee member Kimberly Carey introducing members of the Bronx Bethany’s Chosen choir.

The purpose was to bring a discussion that often exists on the sidelines, sometimes steeped in presumptive assumptions from all sides, into the open, for residents to hear firsthand about the experience of Black residents and leaders and their insights on how to move forward and make progress toward greater equity and inclusion as a community. The program also included joyful performances from the Bronx Bethany’s Chosen choir, led by New Castle resident and former Council on Race and Equity co-chair Nichelle Maynard-Elliott, and speeches from CREI committee members and town board liaison Victoria Bayard-Tipp. The CREI will organize this event annually in partnership with other community groups to keep this conversation going and to grow and maintain strong and meaningful connections across the entire New Castle community.

Appearing on the panel were commentators including: Mondaire Jones, CNN political commentator and former Congressman who served as our Representative from 2021 to 2023, and who was recently appointed a Commissioner on the U.S. Commission on Civil Rights; Tonya Wilson, principal of Roaring Brook Elementary school since 2020, who has been an educator and administrator for 27 years; Ralph Carter, a New Castle resident, who is the parent of a multi-racial child in the Chappaqua Central School District. Ralph works as a lawyer, and advocates for greater diversity, equity and inclusion in the legal profession as an active member of several bar organizations, including the National Bar Association and the New York State Bar Association.; Gavrie Elliott, a Horace Greeley graduate who will complete his degree from the NYU Tisch School of the Arts in 2024. BSU was founded in 2018 by Elliott as the Black Student Union. Around a year and a half ago, it was renamed as the BIPOC Student Union by then co-presidents Nailah Elliott and Kyra Chung-Olagbaiye to reflect club membership.; and Horace Greeley seniors Joyce Chen and Mariam Cisse, who together lead the Horace Greeley BIPOC Student Union as co-chairs.

Additional members of the BSU participated as readers of excerpts from Dr. King’s speech, they are: Ava Herman (10th grade, BSU Vice President), Cindy Chen (9th grade), Adam Kamal (9th grade), Riona Datta (10th grade, BSU Secretary), and Asha Kalathil (9th grade).

The event kicked off with hundreds of residents gathered in front of Scattered Books. Speaking: Tamara Ramirez, Chappaqua PTA President, along with members of the BIPOC Student Union and town residents. Two Horace Greeley students Emma Ramirez and Mariam Cisse, singing, “Lift Every Voice and Sing”. Holding a sign: Kerry, 8, New Castle resident, Grafflin second-grader, son of co-chair Supurna Banerjee and resident Brendan Rudolph.

 

Inside Press Photos   News/Caption Info Courtesy of the New Castle Council for Race, Equity and Inclusion

 

 

 

 

Awarded Equity In Your Company? 5 Key Financial Considerations

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As we approach the end of the year, bonuses and tax planning are at the top of many employees’ minds.  Without proper planning, equity compensation grants can seem like a double-edged sword. On the one hand, the equity grants you’ve been awarded represent the potential for significant wealth. On the other, they may have a range of complex financial and tax planning considerations. So, what should you be thinking about when managing your equity compensation?

Here are five important things to consider when strategizing with your team of professional advisors on how to manage your equity compensation grants.*

1. Make sure you know what kind of equity grant you’ve received.

Knowing what kind of equity grant you’ve been awarded will help you understand when and how you may owe taxes. Nonqualified stock options (NQSOs) are a common type of equity grant that are awarded at a pre-determined exercise price, also known as the strike price. Other types of equity compensation may include incentive stock options (ISOs), restricted stock units, and performance shares.

2. Keep track of when your equity compensation grants vest.

The vesting period defines the amount of time you must hold the equity grant before it vests and generally is no longer forfeitable. Typically, the equity grant will vest over a period of time, achievement of performance goals or a combination of both.

3. Understand the tax consequences of your equity compensation grants.

NQSOs do not qualify for special tax treatment so the spread between the strike price and the fair market value (FMV) of the stock at the time of exercise is considered ordinary income subject to federal, state, and local income taxes and payroll taxes. ISOs do not generally result in taxable income when they are exercised, but they may result in ordinary income or capital gain at the time the shares are sold depending on how long the shares have been held. However, the spread between the strike price and the FMV of the stock at the time of exercise may be considered income for Alternative Minimum Tax (AMT) purposes.

With restricted stock units or stock performance awards, you are generally subject to ordinary income tax when the equity grants vest.  The type of equity grant and terms of your company’s  plan will determine when and how it is settled and taxed. 

4. Determine whether a section 83(b) election makes sense for you.

If you make a section 83(b) election, you recognize taxable income in the year the equity award was granted, rather than in the year it is no longer subject to a substantial risk of forfeiture. Typically, a section 83(b) election can only be filed in connection with the grant of certain types of equity awards, such as, restricted stock and performance shares. The section 83(b) election needs to be made within 30 days of receiving the equity grant. If you choose to make a section 83(b) election, you will recognize ordinary income on the excess of the FMV of the equity award at the time of grant over the amount paid, if any. By making an 83(b) election, you have the potential of reducing your overall tax paid if your company grows. When you eventually sell the shares underlying your equity award, you may recognize capital gain or loss. Assuming you sell the shares more than one year after grant, any gain would be treated as a long-term capital gain, which is taxed at a lower rate, than ordinary income. 

5. Find out if your shares qualify as Qualified Small Business Stock.

You may be able to exclude up to 100% of any gain from the sale or exchange of qualified small business stock (“QSBS”) acquired after September 27, 2010 and held for more than five years.  The maximum amount of gain excluded is generally allowed up to $10 million or ten times the cost of the stock. The five-year holding period is for shares–not options–so if QSBS treatment is a future possibility, exercising options early and along the way may make sense. It may also be useful to negotiate an accelerated vesting schedule to start the clock on the holding period. QSBS rules are complex and include some key requirements for taking advantage of this exclusion, so consulting a tax advisor for guidance is advisable.

Key Takeaways

Deciding how to manage your equity grants can be a complex undertaking, especially if they are a significant component of your compensation package and your company stock represents a large portion of your overall wealth. Understanding the financial and tax implications of your equity compensation–and how they impact your comprehensive wealth management strategy–is critical. Working closely with your professional advisors–including your CPA, attorney, and a financial advisor who understands the nuances of equity compensation plans–can help you create a customized plan for achieving the future you envision for yourself and your loved ones.

About the Author

Richard Bloom, CFP® is a Financial Advisor, Dedicated Equity Plan Specialist with The MayerGelwarg Group at Morgan Stanley. As a Dedicated Equity Plan Specialist, Rich utilizes a unique set of skills to help clients who receive compensation benefits in the form of company stock. His deep understanding of the tax ramifications surrounding stock awards and grants qualifies Rich to work cohesively with clients’ CPAs to develop long-term, tax efficient diversification strategies. He can be reached by email at Richard.Bloom@morganstanley.com or by telephone at (212) 893-7597.

* Strategies are subject to individual client goals, objectives, and suitability. Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. Only US federal income tax information is provided herein, and other taxes may apply depending on an investor’s particular circumstances. Investors should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.  

© 2021 Morgan Stanley Smith Barney LLC. Member SIPC.

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