Tech Sector Loyalist Must Reduce Risk by Diversifying Concentrated Equity

The Challenge

Concentrated Stock
A mid-career professional in the technology sector has spent over a decade building their career at a high profile publicly traded tech company. Over time, a significant portion of their net worth has become concentrated in company stock(s) through equity compensation, including restricted stock units and an employee stock purchase plan. While proud of their long-term commitment to the company, they have begun to feel increasingly uneasy about their financial exposure. At the same time, they are making generous charitable donations each year — but in a way that lacks tax efficiency and long-term structure. They need a plan that would help them reduce concentrated risk, support their charitable goals more strategically, and gain clarity about their financial future.

The Goal

Diversification and Giving
The client is seeking professional guidance to diversify their concentrated equity position in a tax-efficient way, support causes they care deeply about in a more intentional and sustainable manner, and build a financial plan that balances growth, risk management, and long-term giving.

The Solution

Tax-Efficient Diversification and Philanthropy
Summitry’s advisory team would develop a holistic financial strategy that addresses both their portfolio risk and philanthropic priorities. We begin with a detailed analysis of the individual’s equity holdings and tax position. In this case, the team would suggest a phased diversification strategy that minimized capital gains taxes while steadily reducing overexposure to a single stock. To enhance charitable impact, Summitry would recommend establishing a donor-advised fund (DAF). By contributing appreciated stock to the DAF, the client would receive an immediate tax deduction and would create a long-term vehicle for giving — one that aligned with their passion for expanding educational opportunities in underserved communities. Simultaneously, Summitry would redeploy the proceeds from the equity sales into a diversified portfolio that reflects their risk tolerance and long-term objectives. All of this anchored in a broader financial plan that includes cash flow forecasting, retirement planning, and legacy considerations.

The Outcome: Stronger Financial Foundation
Summitry aims to provide the client with a stronger, more balanced financial foundation — and the peace of mind that comes with it. Their charitable giving is not reactive; it’s intentional, tax-smart, and deeply personal. They can remain invested in their company’s success but no longer depend on it exclusively for their financial future. Most importantly, Summitry has provided financial tools so they can be confident that their wealth can serve both their personal and philanthropic goals for years to come. Think it may be time to part with your company stock? It depends.