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Beyoncé chose payment in equity over cash from Uber for a performance. (ddp)

Financial planning Beyoncé, Uber and human capital diversification

31 May 2019, 8:21 pm CEST, written by UBS Editorial Team

Four years ago, Beyoncé was offered $6m to perform for an Uber event in Vegas. Beyoncé chose payment in equity over cash from the company and received the share equivalent of $6m in 2015. Following Uber's recent IPO, her shares were reported to be worth $300m, though later reports put the value at closer to $9m, after taking into consideration that her stock may have been restricted shares.*

While $9m is not as astounding a number as $300m, it is -Diversifying your future human capital into un-related still certainly a nice win. businesses can put your legacy ahead of the curve. In the context of the Liquidity. Longevity. Legacy.** strategy, it's Here are my takeaways: important to note first that your Liquidity and Longevity -Beyoncé's success with both her career and the big equity strategies should be in good shape. As the source of income payoff is uncommon. According to computer scientist and changes, the future growth of your income can rise as does statistician Samuel Arbesman, the odds of someone getting your human capital. famous is about 1 in 10,000 people. Given these small Author: Ronald Sutedja, Quantitative Strategist Americas odds, it's clear that only a small proportion of anyone's capital, i.e. financial or human, should be allocated to such *Beyonce's Uber Deal not nearly as large - Mercury News a "lottery ticket" like outcome. **Timeframes may vary. Strategies are subject to individual -Human capital is defined as the present value of your client goals, objectives and suitability. This approach is not future income. It can be diversified by accepting different a promise or guarantee that wealth, or any financial results, gigs with the potential for different return/cash flow can or will be patterns. Obviously you still need to focus on things that achieved. you love and where you have a competitive advantage. In Beyoncé's case, this means she can diversify by shifting from Read original blog: Human Capital Diversification, 24 May singing to acting. 2019. UBS Investment Insights For UBS marketing purposes

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