SignatureFD has launched a dedicated wealth management initiative for executives, at a time of heightened industry interest around the business benefits of targeting niche client segments.

Atlanta, GA-based SignatureFD has launched a dedicated wealth management initiative for executives, at a time of heightened industry interest around the business benefits of targeting niche client segments.

Led by an advisory team with 30 years of related experience, SignatureEXEC provides support in the areas of executive benefits, investments, financial planning, insurance and taxes. Crucially, it also connects clients with other executives and professionals serving this community, Dan Dubay, a partner at the firm and director of SignatureEXEC, told Family Wealth Report. 

“The SignatureEXEC community provides opportunities for the executives to develop and grow their professional wealth (human capital) and discover ways they can have a greater impact on their family, company, and community,” Dubay told this publication.

Milton Pedraza, chief executive at the Luxury Institute, strongly believes that there are significant industry opportunities to become a “niche player” by specializing in, for example, women or the LGBT community. However, not many firms have even thought about it, let alone embraced the opportunity, he told this publication previously. “It’s not just about sending out a message, but sending one that is relevant and liked and embraced. A lack of customization is one of the challenges that these firms have.”

Niche executive needs

Dubay noted that while executives have “great wealth” – in their knowledge, influence, talents and resources – that wealth is often “not optimized” due to career pressures and time constraints.

One of the most obvious factors setting these individuals apart from other entrepreneurs or business owners is that they have less control over their calendar, for example. Additionally, their compensation often has an equity deferred compensation component that is 50-75 per cent of their remuneration, throwing up many issues – besides taxes and maximizing the value of equity – that need to be balanced.

“Even our proprietary equity compensation optimizer models can’t take into account,” Dubay said.

He explained that the effect of their company’s stock price going down 15 per cent can have a “multiplied effect” on equity compensation, changing their net worth by 50 per cent. And this can have a material effect on not meeting certain goals, he said. They may also experience large variances in compensation from year to year, which requires coordination with their CPAs.

Meanwhile, it is also useful for these individuals to know what their plan would look like if the board of their company or a new CEO decides to replace them. “What effects would it have on their vesting or acceleration of various forms of equity compensation and benefits?,” Dubay said. “What if another company come knocking at their door – what will it take in lost equity compensation to make the move?”

Another vital area of consideration relates to addressing and minimizing their liability and security risks as an officer of a public company or serving on a board of directors.

Founded in 1997, SignatureFD offers wealth management services to 700 clients including high net worth individuals and families.