The State of Equity Plan Management 2022 Report: Equity Compensation and Talent Retention

 

Gain insight into the current equity plan management landscape, including how companies are implementing, managing, and reimagining their equity plans.

Amid the “Great Resignation,” subsequent “Great Rehiring,” and an evolving employment landscape, public and private companies are hyper-focused on finding ways to attract and retain talent. Equity compensation remains a powerful tool for these businesses; but, is it enough to accommodate the needs of the modern worker?

That is what we set out to understand in The State of Equity Plan Management 2022 Report—a study focused on global public and private company equity plans, and the factors that drive them. Analyzing the survey responses of 400+ employees across various industries, the study identifies the strategies being deployed to help increase equity plan effectiveness.

3 Key Survey Findings:

(1) Equity Remains an Important Recruitment and Retention Tool

In this year’s report, business leaders placed equity compensation at the important intersection of talent acquisition, company culture and long-term growth strategies. Furthermore, 80% of equity leaders said they believe the importance of equity in compensation programs will increase over the next five years.1

(2) But Equity Alone Isn’t Enough to Reduce Workforce Attrition

While more than half of business leaders graded their equity compensation strategy as “good,” many pointed out that employees are still willing to leave for opportunities that offer better work-life balance and benefits. Overwhelmingly, employees are holistically reevaluating work (not just compensation).

(3) In Response, Companies are Reevaluating Traditional Equity Plan Design

To stay competitive and in line with employee expectations, companies are actively exploring ways to improve the efficacy of their equity programs and, in some cases, completely reimagine them. Shorter or more flexible vesting schedules and increasing employee education and communication were all strategies highlighted in this year’s report. 3

Read the full 2022 report to find out more about how global public and private companies are addressing an evolving talent climate and rethinking the role of equity compensation:

Find out more in the full report

 

 

1 Morgan Stanley at Work (2022). The State of Equity Plan Management Report, (page 10).

2 Morgan Stanley at Work (2022). The State of Equity Plan Management Report, (page 13).

3 Morgan Stanley at Work (2022). The State of Equity Plan Management Report, (page 10).

Morgan Stanley at Work services are provided by Morgan Stanley Smith Barney LLC, member SIPC, and its affiliates, all wholly owned subsidiaries of Morgan Stanley.

© 2022 Morgan Stanley Smith Barney LLC. Member SIPC.

CRC#4275122  (02/2022)