The equity compensation gap: why even your most senior leaders are leaving money on the table

Group 1 - Equity compensation serves dual purposes: incentivizing executives for long-term performance and fostering a sense of ownership that enhances employee retention and company culture [1] - The complexity of equity plans often leads to challenges for executives in maximizing their compensation without proper guidance [1] Group 2 - A significant portion of executives, 44%, lack a formal personal financial plan, which can hinder their confidence and ability to manage equity awards effectively [3] - There is a strong correlation between having a financial plan and confidence in achieving financial goals, with 73% of executives with a plan feeling confident compared to only 41% without one [3] - Executives express a desire for more guidance on investment management, estate planning, tax optimization, and navigating equity compensation [3] Group 3 - Financial confidence is linked to better decision-making regarding equity grants, vesting, and exercises, which can lead to improved outcomes [4] - Understanding and engaging with equity benefits increases the likelihood of retention among equity recipients [4] - Closing the planning gap is essential for HR and benefits leaders to support business goals related to employee retention and engagement [4]