Morgan Stanley at Work Unveils Insights from New Stock Plan Participant Survey
- New research finds equity compensation increasing in its value for talent attraction and retention
- Results indicate participants increasingly value financial guidance
- Tax implications and other key considerations continue to confound, although progress is being made
Among the notable findings from the study:
- The power of equity compensation to recruit and retain talent increased: Participant views about the value of stock planbenefits increased year-over-year, with 45% citing stock plan benefits as a reason they joined their company (up 4% pts.) and 60% as a reason they have stayed (up 2% pts.).
- Professional guidance is highly sought after: Over two-thirds (67%) of participants said that if their company offered access to financial professionals to help with investing-related questions they would use this benefit, while nearly as many (65%) said they would seize the opportunity to work with a Financial Advisor for comprehensive financial planning if offered through the workplace. In addition, access to financial coaching on topics such as budgeting, credit and debt management ranked third (53%) as a benefit they would be most likely to use.
- While progress has been made, the majority still do not understand tax implications and other important information. More participants say they understand key topics like how taxes impact stock plan benefits (39%, up from 34%), how to maximize the financial benefit from their stock plan benefits (38%, up from 33%), and how to seek guidance (46%, up from 41%), but the majority still struggle—demonstrating that while education efforts have helped, there is still more work to do.
- Participants are looking for educational content around equity, retirement and investing. Respondents reported they were somewhat or very likely to attend education sessions on stock plan benefits (70%), retirement (68%), advanced investing (67%), investing (60%) and general financial wellness (57%).
“Amid a continuing tight labor market, it is not surprising that while equity valuations have decreased, the value participants place on equity compensation has increased and remains a competitive workplace benefit to attract and retain top talent and drive employee satisfaction,” said
Additional findings from the Second Annual Morgan Stanley at Work Stock Plan Participant study are available here.
Methodology: The data from the
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