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What special considerations do executives face with their own financial planning?B Y K A M E S H N A G A R A J A NB Y K A M E S H N A G A R A J A N

FEATURED ADVISORKamesh Nagarajan, Senior Vice President, Portfolio Manager, Financial Advisor

MINIMUM NET WORTH REQUIREMENT$10 million (planning services) $1 million (investment services)

FINANCIAL SERVICES EXPERIENCE17 years

NUMBER OF CLIENTS100

LARGEST CLIENT NET WORTH$350 million (as of 12/15)

EDUCATIONBA, Vassar College; JD, Syracuse University College of Law

PROFESSIONAL SERVICES PROVIDEDPlanning, investment advisory and asset management services, insurance and investment products

MINIMUM FEE FOR INITIAL MEETINGNone required

COMPENSATION METHODAsset-based fees and commissions (investment and insurance products)

WEBSITEhttp://www.morganstanleyfa.com/prandaragroup/

EMAILkamesh.nagarajan@morganstanley.com

THE PRANDARA GROUP AT MORGAN STANLEY 1290 Avenue of the Americas, 13th Floor, New York, NY 10104 212.492.6750

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The demands of running a public company do not leave corporate exec-utives much time to ponder their personal balance sheets. They spend so much time at work that they have little energy left to focus on their own financial future—a vital task considering that they are also spouses, parents and the planners of their families’ financial future.

Sustaining the wealth they have built poses unique challenges, as these exec-utives often hold illiquid assets and con-centrated positions in the businesses that employ them. The emotional at-tachment they have to their companies may also present an obstacle to creating a rational plan, since their personal wealth is inextricably linked to those companies’ fortunes.

Indeed, executives and retirees com-monly feel distrustful of the general market, yet confident about their own company’s stock, as they had a direct

role in ensuring the company’s success.Corporate executives’ investment portfo-

lios therefore may be heavily weighted with employer stock and stock options subject to rules of which they may not be aware. Yet it is important that they understand the risks, as well as the rewards, of employer stock ownership and integrate their corporate ben-efits with the rest of their wealth plan.

Some corporate executives have enjoyed significant appreciation of stock options and company stock due to incentive-based equity compensation plans. These concen-trated stock positions present planning chal-

lenges because volatility is significantly higher than with diversified portfolios. It can be devastating to an executive’s per-sonal finances when the stock has an unex-pected downturn.

Restricted stock and stock option grants are potentially valuable perks that can go a long way toward increasing financial secu-rity. But they are also exceedingly complex.

While employers must detail every aspect of their equity compensation plans, em-ployees are responsible for knowing the of-tentimes complex rules. What happens to someone’s equity awards should he or she retire or leave for another employer? If an executive owns performance shares, how does the plan work? What is the payout if performance goals are met—or not met?

Senior executives may be subject to:• SEC Rule 144, which governs the sale of

control or restricted stock;• Section 16 of the Securities Exchange

Act, which requires disclosure of any changes in beneficial ownership to the SEC;

• Insider trading policies, which exist alongside SEC resale regulations.

Corporate executives may further be subject to corporate blackout periods when they’re not allowed to sell their company’s stock. At other times, they may hesitate to sell stock for fear of appearing disloyal or trigger-ing signals associated with insider transactions.

It is not unusual for a corporate executive to grow his or her wealth, yet lack an overall wealth management plan. A comprehensive approach to wealth management, however, employs a client-focused process that inte-grates an executive’s corporate holdings and benefits with other aspects of his or her financial plan.

Integration of corporate benefits with the rest of the overall plan is vital and something often overlooked when executives engage in retirement and estate planning.

In short, executives need to plan and keep planning. If time is a limited commodity, finding competent advisors to assist will be a major advantage. l

Kamesh Nagarajan is a Financial Advisor with the Wealth Management division of Morgan Stanley in New York, NY. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, Member SIPC (www.sipc.org). Morgan Stanley Financial Advisors engage Worth to feature this profile. Mr. Nagarajan may only transact business in states where he is registered or excluded or exempted from registration (www.morganstanleyfa.com/prandaragroup). Transacting business, follow-up and individualized responses involving either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in states where Mr. Nagarajan is not registered or excluded or exempt from registration. The strategies and/or investments referenced may not be suitable for all investors.

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. Morgan Stanley Smith Barney LLC offers insurance products in conjunction with its licensed insurance agency affiliates. (CRC1374766 01/16)

T H E P R A N D A R A G R O U P A T M O R G A N S T A N L E Y

KAMESH NAGARAJAN IS A SENIOR VICE PRESIDENT AND PORTFOLIO

MANAGEMENT DIRECTOR AT MORGAN STANLEY, WITH OVER 17 YEARS

OF EXPERIENCE. His team, the Prandara Group at Morgan Stanley, helps

corporate executives with concentrated stock planning and advises physicians and

entrepreneurs on comprehensive wealth-management issues. Mr. Nagarajan received

his BA in economics from Vassar College and his JD from Syracuse University College

of Law. He is a national speaker and writer on financial topics and has appeared on

CNBC, Fox Business News and Forbes.com. Mr. Nagarajan is a charter member of the

Indus Entrepreneurs. He is actively involved with Lend-A-Hand India and the American

India Foundation as well as with Columbia Business School’s Eugene Lang Entrepreneur

Center. He has been a mentor in the Columbia Mentorship Program for Entrepreneurs

since 2010. He resides in Manhattan with his wife Ami and their six-year-old twins. l

A B O U T U S

TIt is not unusual for a corporate executive to grow his or her wealth, yet lack an overall wealth management plan.

THE PRANDARA GROUP AT MORGAN STANLEY 1290 Avenue of the Americas, 13th Floor, New York, NY 10104 212.492.6750

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The Prandara Group at Morgan Stanley is featured in Worth® 2016 Leading Wealth Advisors™, a special section in every edition of Worth® magazine. All persons and firms appearing in this section have completed questionnaires, have been vetted by an advisory group following submission by Worth®, and thereafter paid the standard fees to Worth® to be featured in this section. The information contained herein is for informational purposes, and although the list of advisors presented in this section is drawn from sources believed to be reliable and independently reviewed, the accuracy or completeness of this information is not guaranteed. No person or firm listed in this section should be construed as an endorsement by Worth®, and Worth® will not be responsible for the performance, acts or omissions of any such advisor. It should not be assumed that the past performance of any advisors featured in this special section will equal or be an indicator of future performance. Worth®, a publication of the Worth Group LLC, is a financial publisher and does not recommend or endorse investment, legal or tax advisors, investment strategies or particular investments. Those seeking specific investment advice should consider a qualified and licensed investment professional. Worth® is a registered trademark of the Worth Group LLC.

Kamesh Nagarajan Senior Vice President, Portfolio Manager

Financial Advisor

The Prandara Group at Morgan Stanley1290 Avenue of the Americas, 13th Floor

New York, NY 10104Tel. 212.492.6750

kamesh.nagarajan@morganstanley.comhttp://www.morganstanleyfa.com/prandaragroup/

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