Fewer equity scheme workers selling company stock to pay for life’s essentials

Our latest annual survey of more than 1,000 equity plan participants reveals that fewer US workers with access to company shares are selling their stock to pay for life’s essentials such as rent, mortgage or bills than a year ago: 19.43% in 2022 compared with 13.87% in 2023.

The research—which every year asks the participants of our client employee equity plans whether they have sold any of their equity and why—found that 36.96% of all plan participants surveyed had sold at least some of their shares in the past year, a slight increase from 34.76% the year before. The survey also found that just under half (48%) of participants in 2023 feel more engaged with their employer because they hold shares in the company.

Whilst employees are clearly still experiencing financial pressures, our research shows that the situation has eased somewhat compared with 2021-22, which saw almost 6% more US employees releasing funds from their employee equity plans for essential expenses.

The return to pre-pandemic levels working patterns, strong economic activity and a tight labor market during the past year are all helping workers fight against the effect of inflation on their wallets.

Economy weighing less heavily

The latest data also show fewer employee share plan participants who accessed their shares are selling because of the current economic situation. In 2022, just under 40% (38.02%) of plan participants who had sold shares said the cost-of-living squeeze in the aftermath of the pandemic had played a role in their choice to sell.

The latest survey showed 28.38% of those who had sold shares were influenced by these factors a drop of just under 10% (9.64%) compared with the previous year.

Saved from dipping into savings

Of those who had sold shares, almost a quarter (23.17%) said they would have otherwise turned to their savings to get the money they needed during the last year. About 7.56% of respondents said they would have taken out a bank loan to obtain the money, whilst 9.27% would have turned to their credit cards.

Related: Why employers should consider adding emergency savings to their benefits ecosystem

Almost one-fifth (18.78%) of participants said that, if they hadn’t had access to their shares, they would have sourced the money they needed through their salary. A similar proportion (18.54 %) of participants who sold shares said they in fact didn’t need the money but wanted to direct the proceeds of their sale towards a different investment.

The research underlines the key role employee equity plans can play in enabling companies to support their employees through challenging periods, helping, over time, to improve workers’ overall financial situations.

Sheila Frierson, President of NA Plan Managers, Computershare