New career opportunity: Stock plan administrators are in high demand

The role of a stock plan administrator (SPA) or equity compensation administrator is often misunderstood. It’s commonly assumed to be mostly an accounting function, but that falls short of capturing the true breadth and depth of the role.

Lead stock plan administrators have specialized knowledge and a wide-ranging skill set. Their work is often complex and draws from areas including finance, law, compensation planning, tax and more.

It’s a fast-growing field and an exciting time to be in it, whether you’re considering a new career opportunity or seeking to attract new talent to a highly dynamic industry.

Understanding the role

SPAs play a vital role in helping companies structure and manage equity compensation programs, which can have a significant impact on employee retention and overall company success.

SPAs are responsible for managing the administration of stock options, restricted stock units, and other equity awards, as well as overseeing the vesting and distribution of these awards. They also play a crucial role in communicating the value of these programs to employees and ensuring that employees are properly informed and engaged.

When a company goes public, for example, the SPA’s role is critical. They have to bring a deep understanding of a company’s mission, values, goals and more – from top to bottom, side to side, and bottom up.

A lot of money goes into equity comp plans, and a good SPA is integral in driving the value that can be derived from them. That in turn makes a meaningful impact on the organization as a whole.

Understanding the opportunity

Companies are increasingly using equity compensation to incentivize and retain employees by offering stock options or other forms of equity as part of their compensation packages. The number of plans has grown by almost 20% each year over the last five years.

All those plans need administrators. Therefore, equity comp professionals are in high demand. That said, most people who end up in the field didn’t set out to do so. This goes back to the issue of the SPA profession not being well known or understood, even by recruiters. But that could be changing.

One area that is helping to bring credibility to the field is the professional designation Certified Equity Professional (CEP). It’s not an easy process, requiring multiple tests and a deep knowledge of the discipline. But for those who obtain their CEP designation, it signals a level of expertise that can pave the way to advanced positions.

Currently there aren’t a very high number of CEPs on the market despite the fact that they’re in high demand. So, with the designation comes good job security as well.

The human part

A large number of equity compensation professionals may have stumbled into the field, but once they’re there, they tend to stay. Part of the reason for that is because it’s about much more than numbers. It’s a job in which you get to make a huge impact on people’s lives and their financial futures.

Related: Use a communications strategy to drive equity program participation

At Schwab, we like to say equity comp professionals turn earners into owners. They get to change the way employees see what they do; to widen their view of what’s possible; and to attach themselves to something larger than their day-to-day job.

Among the many things you do as a SPA is work with people directly who are participating in the plans. For many participants, they never forget that turning point in their lives, when things became easier; they were able to pay off debt, buy a house, start a family, pay for their kid’s college. Many of these things may have seemed unreachable at one time.

That’s what makes many equity comp professionals love what they do.

Amy Reback is Managing Director at Schwab Stock Plan Services.