Equity compensation is growing more popular as a way to attract and retain talent.
According to Morgan Stanley at Work's recently released Stock Plan Participant Survey, the importance of stock plan benefits increased year-over-year, with 45% of respondents citing equity compensation as a reason they joined their company, up 4 percentage points from a year ago, and 60% saying it's a reason they've stayed, up from 58% in 2022.
Professional guidance and education also proved to be highly sought-after employee incentives. The study showed more than two-thirds (67%) of respondents said that if their company offered access to financial professionals to help with investing questions, they would use this benefit, while nearly as many (65%) said they would work with a financial advisor on comprehensive financial planning if that were offered through the workplace.
The report also revealed that 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 employees appreciate and often stay at companies longer because of equity compensation, employers can do even more," said Kyle Thompson, senior vice president and wealth advisor at SageView Advisory Group. "Offering education around how this benefit fits into their personal situation, especially the tax implications, is vital to long-term retention of employees.”
“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," Scott Whatley, managing director and global head of equity solutions at Morgan Stanley at Work, said in a statement.
“Education and guidance remain key to help both employers and their participants unlock the full potential of their stock plan benefits, as there is no better way to reap the full rewards of your plan than by ensuring the participant population fully understands and embraces it,” Whatley added.
On the topic of education, the survey showed that the majority of respondents still don't understand a number of the tax implications related to their compensation. That said, participants reported that 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%).
Meanwhile, LPL attracted a five-advisor team managing $380 million in Kansas, while a veteran with stripes from Morgan Stanley, UBS, and Fidelity has joined Prime Capital Financial.
At Goldman Sachs’ RIA conference, Dynasty’s Shirl Penney said an AI clone trained on his emails and speeches could be the first of “hundreds of digital employees.”
The top-ranked RIA by total AUM continues to scale its wealth management arm, bringing its Pennsylvania presence to five offices.
The Reddit trading community's formal comment letter against the proposal is drawing widespread attention across finance and tech circles.
Chicago Partners Wealth Advisors is helping shape the platform's product roadmap after switching from a legacy system.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
