Navigating Executive Transitions: A Conversation with Kelly Pedersen of Caissa Wealth and Melissa Johnston of EntreBank

In the first Caissa Colleague Blog, Kelly Pedersen, owner of Caissa Wealth Strategies, sits down with Melissa Johnston, co-founder of EntreBank, to discuss how their firms collaborate to support executives during significant financial transitions. Their conversation highlights the tailored strategies they use to ensure smooth, well-planned transitions, whether executives are relocating, buying into a business, or exiting their roles.

C-Suite Executives on the Move

Kelly Pedersen: Melissa, when C-suite executives move from one company to another, they face significant challenges, including new compensation structures, tax implications, and the logistics of relocating their families. At Caissa, we ensure all these aspects—taxes, retirement planning, and more—are seamlessly integrated into their new circumstances. How does EntreBank support these executives during such major transitions?

Melissa Johnston: We focus on understanding our clients’ past experiences, current needs, and future goals. Our approach involves offering personalized banking services, such as setting up new accounts, managing cash flow, and providing financing options tailored to their unique situations. Executives also appreciate our digital banking app, which allows them to handle transactions efficiently while still having the option to speak directly with a banker for more personalized support. This way, they can focus on their new roles without worrying about the financial details that come with such a big move.

Kelly Pedersen: That direct access to a banker is crucial, especially when dealing with personal and significant transitions. It’s different from what you often get with larger banks. At Caissa, we make sure our clients have the right relationships in place, including a reliable banker who understands their specific needs. This way, their investments and overall financial plans stay on track.

Executives Buying into Closely Held Businesses

Kelly Pedersen: Executives buying into a closely held business often need assistance structuring financing that aligns with their long-term goals. At Caissa, we help them understand the financial impact of these decisions while keeping their overall wealth plan intact. Melissa, how does EntreBank assist clients in these situations?

Melissa Johnston: We work closely with these clients to provide tailored loan structures that fit their specific financial situations. For example, we recently helped a key employee buy into a furniture company. The owner was selling shares as part of his succession plan but didn’t want to finance the purchase. We put together a financing package for the employee that aligned with her cash flow and repayment capabilities, ensuring that she could make the purchase without jeopardizing her financial stability. The repayment plan was structured over five years, with the first payment delayed to accommodate her expected increase in distributions from the company.

Kelly Pedersen: That’s a perfect example of how we can integrate our services. At Caissa, we map out and illustrate the numbers and cash flow, ensuring that every financial decision aligns with the client’s overall wealth plan. Your approach, Melissa, really complements this by making sure the client is comfortable with the payment plan and understands every mechanism and option available to them.

Executives Exiting Their Roles

Kelly Pedersen: When executives exit a company, especially when they need to exercise valuable compensation options quickly, the process can be complex. At Caissa, we provide the wealth planning expertise needed to navigate these transitions smoothly. Melissa, how does EntreBank help bridge the financial gaps during these critical times?

Melissa Johnston: We offer customized loan products designed to support executives during their transitions, allowing them to confidently move forward. For instance, if an executive has a pause in income or needs quick access to cash to exercise stock options, we assess their historical income and earning power. We then structure a loan that meets their immediate needs while planning for their long-term financial health. This could involve setting up a short-term loan or line of credit to bridge the gap while they transition into their next role.

Kelly Pedersen: This is exactly why we love working with you, Melissa. Our values align perfectly, and together, we ensure that clients walk away with clarity and confidence in their financial decisions, which is so crucial during these times.

Melissa Johnston: Absolutely. It’s not uncommon for clients to come to us with one specific request, but after digging deeper, we often find that a different structure or loan product might serve them better. It’s about understanding all the options and making sure they’re fully informed to make the best decisions for their situation.

Kelly Pedersen: I can relate to that. Clients often come to us seeking investment help, but once we dig in, we discover that what they truly need is comprehensive strategic wealth planning. It’s all about taking the time to really listen and offer the best possible advice.

Melissa Johnston: Exactly. And that’s why our partnership works so well. We both prioritize understanding our client’s needs fully and offering them solutions that go beyond the obvious, ensuring they are set up for long-term success.