One decision, in the form it is actually made.

The household's employer stock has grown into the largest single position on the balance sheet — large enough that one company's fortunes now move the family's plan more than the rest of the portfolio combined. Held, it carries single-name risk the market never pays the family to bear. Sold at once, a low basis turns a risk decision into a tax event. The question is not whether to reduce it. It is how fast, at what tax cost, and into what.

• Sell outright

  Cuts the risk immediately and completely — at the maximum tax cost, realized in a single year and stacked into the top brackets. Rejected: it solves the risk by creating the largest avoidable bill.

• Hold and hedge

  Collars and exchange funds defer the tax but add cost, complexity, and a counterparty — and the family's real objective is fewer moving parts, not more. Rejected for this household; scored in the firm's single-asset-risk guide.

• Sell on a schedule

  A fixed multi-year exit, each year's sales sized to an agreed tax budget, lots chosen for basis, proceeds redeployed under the Capital Allocation Policy. Slower than an outright sale — but the risk falls every quarter, and the tax cost is a number the family approved in advance. Adopted.

Exit the position over three years, on a schedule, not a signal — no forecasts, no waiting for a better price. Each year's tranche is sized to the tax budget agreed with the family's CPA; lots are selected for basis; proceeds move into the tax-managed core under the policy's bands.

• Tax budgetRealized gains in any year stay inside the budget set at the Operating Session — harvested losses elsewhere in the book extend it, they don't excuse exceeding it.
• No timingTranches execute on the calendar. A rising price does not pause the schedule; a falling one does not accelerate it beyond the budget.
• DestinationProceeds land in the policy's core allocation — never in a new concentrated idea.

• Reopens ifTax law changes the cost of the remaining tranches — the budget is re-run, not assumed.
• Reopens ifA liquidity need or the business sale changes what the proceeds are for.
• Reopens ifThe position falls far enough that the remaining risk no longer justifies the remaining tax cost.

The memo is the rationale of record: the Decision Register carries the entry (DR-003), the Operating Manual logs the implementation (rev. 02), and each Operating Session re-checks the triggers above.