We’re celebrating, and you may have missed the reason why! One year ago, our company made the transition from Equity Administration Solutions, Inc. (EASi) to Certent, Inc. – and this month we’re celebrating our one year anniversary. Our acquisition of Rivet Software in 2014, marked the expansion of our technology and service offerings further into financial compliance and SEC reporting. That meant that we no longer ONLY offered equity administration and reporting solutions – and we needed to change our name and broaden our brand to reflect that change.
You’ve heard it over and over. Good companies create a sense of ownership among employees at work. They share financial information with employees at the corporate and work level, they encourage employees to contribute ideas, they set up employee teams, and they limit hierarchy. Bosses focus less on telling people what to do than listening to what employees think should be done. Creating a sense of ownership leads to high employee engagement and high engagement leads to higher performance. Research by the Gallup Organization finds that high engagement companies “experience 22 percent higher profitability and 21 percent higher productivity compared with workgroups with low levels of engagement.”
According to the Bank of America Merrill Lynch Workplace Benefits Report, 81% of employers consider their employees’ overall personal financial well-being part of their responsibility. More important than the sense of responsibility employers feel around offering financial wellness tools, perhaps, is the effect on employee behavior and overall satisfaction. The report also found that 76% of employers feel that providing this benefit to employee’s results in a more satisfied workforce and 66% of employers feel offering a financial wellness program fosters a greater sense of loyalty.
If you’re as much into stock plan education as we are, you’re probably also really into survey data. That makes today a good day for both of us at this blog. We have been perusing the 2015 Global Equity Incentives Survey by PricewaterhouseCoopers and the NASPP. The survey presents questionnaire data from 245 multinational companies with employees in 75 countries. The researchers found that the use of equity awards by the surveyed companies generally continued to grow in 2014 and 2015, after falling in 2009–2011 and rebounding in 2012. With this growth in the use of equity has come an expansion in stock plan education and communications.
When building an equity compensation plan, companies have to consider which employees will be eligible to receive equity. Are you looking to develop an executive-only plan focusing on senior management or a broader program where all employees may participate? Both have their pros and cons, and pulling guidance from larger corporate goals and vision can help you lay out a plan that will drive the right results.
Executive compensation is a complex and controversial subject. Companies are often criticized for overpaying their executives, while shareholders are questioning the pay-setting process and the outcome it produces. This debate has triggered regulatory changes, which in turn have affected the composition of executive compensation packages. Over time, companies are offering less and less cash-based compensation and steadily increasing the portion of performance-based awards.