Employee education is a central
component of equity administration.
According to The State of Equity Plan
Management at Private Companies
2020 Report, employees highly
engaged in equity compensation plans
when the organization had a weekly
to monthly communication frequency.
Employees were moderately engaged
with their equity compensation
plan when the communication was
quarterly to semiannually.
6
Yet, it's common for employees to
have difficulty understanding complex
parts of equity compensation,
such as vesting, exercising options
and taxation. Uncertainty can not
only hinder participation but also
increase the burden on the equity
administration team.
What methods do you use to
educate your employees on their
equity plans?
E-mail
Workshops
& Webinars
Online
Employee Portal
1-on-1
Guidance
Newsletters
Social Media
Brochures
& Pamphlets
Lunch & Learns
Other
57%
33%
32%
31%
30%
26%
24%
24%
30%
80
%
This is an area where having an online portal can
take the some of the administrative burden off
the business. In the state of equity plan report,
nearly 80% of respondents said that their
companies either have an online or app-based
portal for employees to access their equity
plans, or that they were actively interested in
implementing one.
6
7
6
"The State of Equity Plan Management at Private Companies." Shareworks. 2020.
https://discover.shareworks.com/equity-administration/private-equity-compensation-report MORGAN STANLE Y AT WORK
5
Educating
and Engaging
Your Employees
