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.