By Mike Gibbons, RICP®
Pharmaceutical executives’ financial planning choices are vast. However, when your executive compensation and your overall finances are complex, fine-tuning your financial plan can start to feel overwhelming.
I’ve helped countless pharmaceutical executives build financial plans that align with their goals. In this article, I take you through a checklist of pharmaceutical executives’ financial planning decisions for a financially sound 2026.
1. Take a Look at Your Compensation Package and Optimize if Needed
For pharmaceutical executives, financial planning is often made complex by the sheer variety of compensation types available. Before you dive into financial planning for the new year, take a moment to take stock of your compensation. This might include the following:
Restricted stock units (RSUs)
Performance bonuses
Deferred compensation plans
If you intend to sell some of your company stock, it’s essential to do so carefully. Intentionally timing your sales can potentially save you thousands of dollars in taxes.
2. Max Out Your Retirement Contributions
Each year, the IRS adjusts contribution limits for 401(k)s, IRAs, and other retirement accounts. For 2026, the maximum employee contribution is $24,500 for 401(k) and 403(b) plans, and $7,500 for IRAs. Additional “catch-up” and “super catch-up” contributions are available for employees based on age. If you are 50 or older, you may make the following “catch-up” contributions:
Catch-up contributions (age 50 and older):
401(k) and 403(b): Additional $8,000, for a total contribution of $32,500
Super catch-up contributions (ages 60–63):
401(k) and 403(b): Additional $11,250, for a total contribution of $35,750
Beginning in 2026, high-income earners (those with W-2 earnings over $145,000) must make catch-up contributions on a Roth (after-tax) basis.
3. Take Advantage of Advanced Tax Planning Options
Tax planning should be a year-round effort, especially when you have a complex tax situation like most pharmaceutical executives. Charitable giving strategies like donating appreciated stock may help you lower tax liability. Thoughtful tax-loss harvesting can do the same.
Tax planning can be stressful, but I aim to take much of the guesswork out by running income tax projections on different scenarios.
4. Assess Your Investment Portfolio
Many pharma executives have concentrated holdings of company stock. This can destabilize your portfolio, so careful diversification is an essential part of every pharmaceutical executive’s financial planning. I can review your portfolio with you and help you optimize it for both the 2026 market outlook and your long-term financial goals.
5. Review Your Estate and Legacy Planning
Each pharmaceutical executive’s financial planning strategy should include reviewing their estate plan and adjusting as needed. If you want to focus on preserving wealth for your children and grandchildren, I can help you design personalized multigenerational wealth strategies.
6. Review Insurance Policies and Risk Management Strategies
For pharmaceutical executives, financial planning should include choosing the right insurance policies to safeguard wealth. Life insurance, disability insurance, and umbrella insurance policies can help shield you and your family if something goes wrong.
7. Set Your Financial Goals for 2026
Every pharmaceutical executive’s financial planning goals are slightly different. Setting clear goals can help you monitor your progress and stay motivated. When you integrate your family, personal, and philanthropic goals, you’ll be well on your way to a successful 2026.
Expanding Pharmaceutical Executives’ Financial Planning Options
Gibbons Financial Group is a firm focused on the needs of pharmaceutical executives. An effective financial plan is tailored to your needs, and I take pride in helping my clients build strong financial futures.
If you’re curious about how I may be able to assist with pharmaceutical executives’ financial planning decisions, get in touch online today. You can also call 224-419-5550 or email me at Mike@gibbonsfinancialgroup.com to schedule a complimentary consultation. And be sure to join our free webinar, Retiring Early From Pharma.
Frequently Asked Questions
Why is a pharmaceutical executive’s financial planning more complex than other professions?
Pharmaceutical executives’ financial planning is more complex due to layered compensation structures such as RSUs, stock options, bonuses, and deferred compensation plans. These elements create unique tax considerations, diversification challenges, and timing decisions that require more advanced planning than traditional salary-based income.
What should pharmaceutical executives prioritize in their financial planning for 2026?
In 2026, pharmaceutical executives’ financial planning should focus on optimizing compensation strategies, maximizing retirement contributions, managing concentrated stock positions, and coordinating proactive tax planning. At Gibbons Financial Group, clients receive personalized guidance to align these moving parts into a cohesive plan that supports both near-term decisions and long-term goals.
How can a financial advisor help with a pharmaceutical executive’s financial planning?
A financial advisor helps pharmaceutical executives navigate complex compensation, reduce tax exposure, diversify investments, and plan for retirement and legacy goals. At Gibbons Financial Group, Mike Gibbons specializes in pharmaceutical executives’ financial planning by running tax projections, reviewing portfolios, and designing strategies tailored to executive-level careers and evolving financial needs.
About Mike
Michael J. Gibbons is founder and president of Gibbons Financial Group, an independent advisory firm providing custom-tailored financial planning and investment management services to pharmaceutical and healthcare professionals and their families. Mike has over 25 years of experience and spends a significant portion of his day working with pre-retirees and retirees, focusing on asset management, Social Security and pension planning, as well as retirement income preparation.
Mike has degrees in both business and psychology from Lake Forest College and currently holds his Retirement Income Certified Professional (RICP®) designation from the American College. Mike was named a Five Star Wealth Manager for 2016 and 2018* Mike is heavily involved in his community, having served on the Village of Gurnee Police Pension Board as a Community Volunteer and the St. Patrick’s Parish Financial Board. When he’s not working or volunteering, Mike loves playing golf and spending his time with his wife and children. To learn more about Mike and how he can help you, connect with him on LinkedIn, visit his website, and register for his free webinar, Retiring Early From Pharma, created specifically for professionals retiring from the pharmaceutical, biotechnology, and healthcare industries.
*Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2016/2018 Five Star Wealth Managers.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.