The Karp Executive Wealth Management & ESOP Group of Wells Fargo Advisors. Corporate services

Transcription

1 The Karp Executive Wealth Management & ESOP Group of Wells Fargo Advisors Corporate services

2 The Karp Executive Wealth Management Group The Karp Executive Wealth Management Group focuses on serving the financial needs of corporations and their executives. We have a great deal of experience working with equity compensation programs, corporate cash management, and retirement plans. Through Wells Fargo Advisors, we have access to the products, platforms, and people necessary to provide a high level of service. Broker of record services The Karp Executive Wealth Management Group has been appointed as the Broker of Record for Wells Fargo s corporate clients. Our group is the largest provider of executive compensation services within Wells Fargo Advisors. Whether your company chooses to outsource the administration of your plans or run them in-house, utilizing our group as Broker of Record can add a significant amount of value to both your executives and the people responsible for maintaining the plans. As Broker of Record, our primary goals are to ensure that your executives fully understand their compensation and that transactions are processed properly. Benefits of our services are as follows: Potential benefits to executives Provide for a seamless cashless exercise. File Form 144 when necessary, and provide immediate details for Form 4. Direct access to a team of advisors who focus on working with executives and their company s equity plans. Comprehensive analysis of holdings. Hedging strategies for those who wish to lock-in certain values at companies where such transactions are permitted. Methodical execution and trading advice through our group and our executive trading desk. Educate executives regarding tax strategies related to their equity compensation and the potential rewards and risks associated with holding concentrated positions. Institutional, cents-per-share transaction rates. 1

3 Broker of record services Potential Benefits to the corporation Reduce the work-load and confusion associated with exercising through numerous, individual stock brokers many of whom may not be familiar with the procedures and requirements for processing stock option transactions. Transactions are processed with special attention paid to the impact on the stock price rarely traded at the market. Potentially reduce liability by providing a service that can help educate employees about tax consequences and risks/rewards associated with trading.* Finally, there is no cost to your firm to appoint our team as Broker of Record for your plans. The only cost is the transaction fee charged to the employees which is typically an institutional, cents per share rate. In short, The Karp Executive Wealth Management Group can be a valuable resource to your company, executives and employees. * Wells Fargo Advisors does not render legal, accounting or tax advice. Please consult your tax or legal advisors before taking any action that may have tax consequences. 2

4 Access to 10b5-1 trading plans through our Corporate Office Executive Services * Under Sarbanes Oxley, Rule 10b5-1 plans are considered good corporate governance. The plan, adopted by the SEC in August 2000, allows Section 16 executives and corporate insiders, who are normally subject to periodic blackouts, to set up a prearranged trading plan for their stock options, restricted stock, and/or shares acquired through company stock purchase plans. A Rule 10b5-1 trading plan is a program for the purchase and/or sale of stock that meets the requirements of this SEC rule. These plans provide company insiders with a way to systematically and methodically diversify their interest in company stock and, hopefully, manage the media and market reaction to executive stock sales (10b5-1 trades can be clearly identified on any required Form 4 and Rule 144 filings). In general, the insider must adopt the plan while not in possession of material inside information, and the plan must: Expressly specify the amounts of shares to be purchased or sold, the price of these purchases or sales, and the dates of such transactions; Provide a formula that determines such amounts, prices, and dates; or Delegate such decision-making authority to a person not in possession of such material inside information. The Karp Executive Management Group consists of experienced professionals who are able to provide 10b5-1 services designed to meet your specific needs. * The Karp Executive Wealth Management Group does not provide legal or tax advice. However working with our Corporate Office Executive Services, we can provide you with access to 10b5-1 Plan strategies and drafting. 3

5 Liquidity management The Group provides a full suite of Liquidity Management solutions to companies. These efforts are spearheaded by senior partners Matt Dermer and Jesse Eaton. Our goal is to optimize the investment options for each client s corporate cash management. This is driven by each client s specific liquidity and risk profile. Cash management is a valued part of Wells Fargo s relationship banking and client services. We provide continuous, informed, and active professional management designed to contribute to the safety, liquidity, and net return for your portfolio. Outsourcing your cash management frees internal treasury resources for other valuable functions. The professional services of the group combined with the strength and organizational depth of Wells Fargo Advisors may assist you in meeting your reporting and Section 404 compliance requirements. Investment philosophy The management of short-term assets requires as much full-time professional attention as that of longer-term assets. The first step is to develop and review individualized investment policy guidelines incorporating each clients risk, liquidity, tax, and income requirements. We customize each portfolio to meet your short and long term needs within the constraints of your investment guidelines. We assist our clients by providing services that reduce the time needed to manage cash while enhancing the overall quality of performance and services. With more than seventy years of combined corporate cash management service, our team-based approach provides focused and value-added service further enhancing the complete corporate relationship. Investment objectives We will customize your portfolio based on your company s specific needs, investment policy, and investment objectives which include: Capital preservation emphasize highly rated issuers, distribute securities, diversify maturities Maintain liquidity manage maturity structure to meet liquidity needs and manage holdings for clients unanticipated needs Maximize tax adjusted yield determine mix of taxable, tax-exempt, and tax-advantaged securities Maintain income produce the highest level of income consistent with clients risk and liquidity profile Capitalize on market anomalies across sectors and securities Timely accounting and reporting 4

6 Liquidity management Investment process Investment recommendations will be made within the constraints of your investment policy statement. We will analyze each client s specific risk/reward profile as well as prevailing market conditions, and then construct a portfolio based on analysis of eligible securities, cash flow and liquidity needs, and portfolio diversification. This will be overlaid with a market analysis of current credit ratings, yield curve anomalies to identify income opportunities, and sector analysis by tax and market spreads. From this rigorous process, we will tailor customized individual security selection, sector selection, and maturity decisions. Client services, communication & reporting Each client has a dedicated portfolio manager and back-up with whom you communicate directly. We will follow stated guidelines and adapt to changing circumstances as necessary. In light of changing conditions, we will review your proposed mix of securities. Special attention will be paid to each client s unique administrative and operation needs. We will visit with you regularly, either in person or via phone. Daily trade confirmations and monthly reports within one day of your month end will be provided. Monthly reports will include custody records and relevant portfolio accounting as well as reflect amortization, accrual, performance and reconciliation. These reports may be adapted to your specialized needs, and online access is available as well. 5

7 Liquidity management Retirement plan consulting A well chosen retirement plan can help set your company apart in attracting and retaining high quality people, and it offers valuable tax incentives for your employees and your company. As a plan fiduciary, you and your board members are personally liable for many aspects of your retirement plan offering. Choosing the best retirement plan for you and your employees requires careful analysis. The most critical part of the process is finding a provider that offers retirement plan expertise in administration, service, and quality investments at a reasonable cost. It s important to evaluate providers with care and then establish a partnership with a firm that will stand by you from day one and in years to come. At Wells Fargo Advisors, we take pride in being among the best in the industry in providing guidance for retirement plans for companies of all sizes and assisting them in choosing the right plan. Wells Fargo Advisors acts as consultants to many Fortune 500 companies along with start-up plans. We provide, at your request, a full review of your investment policy strategy, investment line-up and satisfaction of participant needs. Through this analysis, we can provide a check up for your current plan and potentially uncover any areas requiring improvement. We also provide, at your request, a request for proposal (RFP) retirement plan process for a new vendor search. Wells Fargo Advisors has relationships with hundreds of the top retirement plan providers and we thoroughly screen these possible contenders. We collect all relevant information and data required, allowing the top vendors to compete for your business. We will conduct a finalist vendor meeting for your critique and review. The RFP process is complimentary to our corporate clients. 6

8 The team leaders Robert L. Karp, CFP, CRPC Robert heads the group s equity compensation and private wealth management divisions. For over 17 years, Robert has served as senior relationship manager for the executive brokerage team and has served the financial interests of an elite group of CEO s, corporate executives, and institutions. Prior to joining Wells Fargo Advisors, Robert managed the corporate services teams at Oppenheimer and Company from and UBS from In 2001, Robert and his team joined Wells Fargo Advisors, and today his group is the largest provider of Corporate & Executive services within Wells Fargo Advisors. Robert holds the Series 7, 31, 63, and 65 securities registrations and insurance registrations. He has earned the CFP, Certified Financial Planner and CRPC, Chartered Retirement Planning Counselor designations, and is a member of Wells Fargo Advisors Premier Advisors. Robert graduated from the State University of New York with a bachelor s degree in accounting and a finance concentration. Matthew L. Dermer Matt is responsible for the oversight of all group cash management operations, specifically as head of client strategy and relationship coordination. Prior to joining Wells Fargo Advisors, Matt was a Senior Vice President at Lehman Brothers and JP Morgan Chase. Before JP Morgan Chase, Matt started the East Coast cash management practice at Hambrecht & Quist, growing the business from zero to $4 billion in assets in 3 years. He was also a founding member of the cash management effort at Oppenheimer and Company. Matt holds Series 7, 63 and 65 registrations, as well as a bachelor s degree from the University of Michigan. Jesse M. Eaton Jesse is responsible for cash management trade selection and portfolio compliance, as well as client strategy and reporting coordination. Prior to joining Wells Fargo Advisors, Jesse was a Vice President at Lehman Brothers and Vice President of Executive Financial Sales at Hambrecht & Quist, where he was head of East Coast fixed income trading. Jesse holds Series 6, 7, 63, and 65 registrations, as well as dual bachelor s degrees in English and history from the University of Vermont. Vincent M. DeSimone, CRPC Financial Advisor Vincent oversees operations and trading for equity compensation programs managed by the group. This includes coordination of 10b5-1 plans, block trading, and trade settlement. He acts as one of the team s relationship managers and provides additional support through client reporting and periodic insight with respect to industry best practices. Vincent holds the Series 7, 31, 63, and 65 securities registrations, insurance licenses, and holds a CRPC, Chartered Retirement Planning Counselor designation. He graduated from the Stern School of Business at New York University where he received top honors with a double major in finance and marketing. 7

9 Brokerage facts at a glance Executive Summary Wells Fargo Advisors operates one of the industry s largest retail brokerage businesses with nearly 16,000 Financial Advisors and 6,000 licensed financial specialists in retail locations across the U.S. and in Latin America. Wells Fargo Advisors administers more than $900 billion in client assets. Areas of Distinction Unique structure that combines the capabilities of a large, national firm with the best practices of several smaller, esteemed firms Dedicated to Financial Advisors and their relationships with clients Unprecedented choice and flexibility for Financial Advisors and their clients through distinct business channels supported by established products, services and technology Products and Services Advisory Services Asset Management Brokerage Services Estate Planning Strategies Retirement Planning Portfolio Analysis and Monitoring Retail Client Assets Retail Client Accounts $910 billion 7.2 million Total Employees 30,167 Registered Representatives 21,876 Financial Advisors 15,879 Licensed Financial Specialists 5,997 Correspondent Clearing Firms 113 Wells Fargo Advisors is the trade name used by three separate registered broker-dealers: Wells Fargo Advisors, LLC, Wells Fargo Advisors Financial Network, LLC and Wells Fargo Investments, LLC, Members SIPC, non-bank affiliates of Wells Fargo & Company. 8

10 Contact information For additional information, please contact us toll-free at Avenue of the Americas 27th Floor New York, NY Robert L. Karp, CFP, CRPC direct fax Matthew L. Dermer direct fax Jesse M. Eaton direct fax Vincent M. DeSimone, CRPC Financial Advisor direct fax toll-free Philip Harwood Senior Registered Client Associate direct fax Stephen James Senior Registered Client Associate direct fax David Saslowsky Senior Registered Client Associate direct fax Johanna Quintanilla Senior Client Associate direct fax Investment and Insurance Products: u NOT FDIC Insured u NO Bank Guarantee u MAY Lose Value Wells Fargo Advisors, LLC, Member SIPC, is a registered broker-dealer and a separate non-bank affiliate of Wells Fargo & Company Wells Fargo Advisors, LLC A [78070-v1] 9