Why stock plan participants are upbeat despite the challenges of 2020
Stock plans can even influence career decisions, according to a recent survey by E*TRADE Corporate Services, a division of Morgan Stanley at Work.
Stock plan participants of all ages and categories are satisfied with their plan benefits and are placing greater importance on them despite the volatility and uncertainty of 2020. That’s according to E*TRADE Corporate Services, a division of Morgan Stanley at Work, which recently surveyed more than 53,000 participants about how they engage with and feel about their plans.
This is what the survey found:
Participants are more plugged in. With many working remotely, more participants are checking in on their stock plans weekly, up 7 percentage points, and logging in more on mobile devices, up 5 percentage points. The increased engagement conforms with recent data from MorganStanley’s equity compensation solution Shareworks, which found that more companies are digitizing their equity plans.
They are in it for the long haul. More view their equity compensation as a long-term investment, up 3 percentage points, and also hold their equity long-term because they believe in their company’s future and performance, up 5 percentage points.
Stock plan benefits increasingly motivate key career decisions. More participants said equity awards are an important factor when deciding to remain with their company, up 5 percentage points. This view aligns with the recent Shareworks study, where plan decision-makers believe equity comp will increase in importance for compensation, recruiting and retainment in the next five years.
Some employees are seeking student loan benefits. One-third said their decision to accept or leave a job would be affected “quite a bit” or “very much” if their employer contributed to paying off their student loans.
Pain points persist. Taxes and achieving the maximum value of benefits are topics that continue to confound, even though understanding increased by 2 to 3 percentage points. The Shareworks study also found that understanding tax consequences is a top concern among plan decision-makers when it comes to their participants.
Participants are more satisfied. Participant satisfaction with their equity compensation increased 2 percentage points.
“In a year of disruption that’s changed the nature of how many of us live and work, employees of all ages and experience levels are finding more value in their equity compensation, and in doing so are forging closer connections with their employer,” said Kevin Meyersburg, Managing Director and Head of Executive Services at E*TRADE Financial.
“As we chart a path forward for economic recovery, equity compensation is emerging as a game-changing tool that can help companies create a culture of ownership and collaboration, provide traction for their workforce and secure their teams’ actual skin in the game.”
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