For some startup companies, acquiring and retaining talent may be a key
part of their overarching business strategy. Effective talent acquisition
and retention may be one of the many tools that a company views as
carving out a competitive advantage and driving their future growth.
As companies grow from a few people to teams of many more,
leadership often wonders how to effectively reward employees, while
incentivizing them to plant roots. One strategy, among others, that
companies can consider leveraging is granting equity compensation
— a tool that can help to reward employees and promote a culture
of ownership.
At Shareworks by Morgan Stanley, we support companies as they launch
and administer their startup equity plans. Based on our experience
supporting our clients and our research into their experiences, we have
noted the following factors many private companies consider when
crafting an equity compensation plan.
2
78
%
78% of companies reported that
they believe the role of equity
will grow in importance in their
overall compensation strategy
over the next five years.
1
1
"Five Demographic Trends to Enhance and Evolve Your Equity Plan Now." Morgan Stanley at Work. 2020.
https://discover.shareworks.com/featured-content/equity-plan-demographic-trends MORGAN STANLE Y AT WORK
