For any private company, having a clear, accurate view on your company ownership is essential – but the admin and reporting requirements which come with one can be anything but rewarding, especially if you’re running one or both tasks manually.
The ‘classic’ spreadsheet: it’s where many successful companies start out on their Cap Table journey – it’s a sign of a hands-on approach to startup mode – but it increasingly leads to unnecessary complexity and risks of manual error, as well as creating a blind spot to a mountain of potentially beneficial insights.
This is where an integrated cap table and stock plan management solution could really make the difference for your company.
Why integration?
Your cap table acts as an ownership register and will generally include details of the different types of stocks each individual holds. In short it answers two simple questions: who and how much. Who has ownership of your company and how much do they own?
As changes occur to your employee share plan, with new joiners coming on board, leavers, vestings, etc these events will all have an impact on your cap table.
It’s clear that if you operate either of these manually all of those changes will need to be tracked and recorded, which can be an admin-heavy, time-consuming process, one that’s prone to human error.
One of the benefits of opting for an integrated software solution is that it cuts out this manual labor – but the benefits don’t end there.
Insights = clearer outlooks
From the day-to-day operation of your company, through reporting to management and even for audit prep, automation and integration can have major positives. You get the ability to access information and generate reports and dashboards designed to give you a deeper understanding of your company’s ownership structure.
Consider the advantages of being able to run a cap table report broken down by security type or by participant. Imagine being able to get a visual representation of key metrics, exportable reports and link-ups to other cap table related dashboards. It’s your company’s data, made available to you without the need for time-consuming manual processes.
This integration also gives you the ability to generate clear visual representations of key metrics, use drill-down functionality and get the flexibility to use filters as required. This all means you and your teams can easily leverage the accurate information you need to make informed decisions regarding equity allocation, equity compensation and your overall company strategy.
Other key features include access to a wide range of metrics and visualizations, customizable filters, easy-to-read KPI cards, interactive charts and graphs, pivot tables and integration with other cap table reports, right there at your fingertips when you need it.
What’s more having the ability to automate everything from reports to share plan administration to give you an accurate cap table that VCs can trust can be a crucial plus when it comes to seeking out investors.
It can also help with an improved participant experience too, as they get access to current information about the valuation and status of their awards.
‘Streamline. Digitize. Grow.’
As your business scales the complexity of your cap table and your employee stock plans will increase, but don’t underestimate the power that comes from having a clear understanding of all that data. We make it easy for you to manage employee stock plans online, meaning you can focus on running your business.
At J.P. Morgan Workplace Solutions we work with companies from around the world every day, from the seed stage to IPO and beyond, to help them bring their equity compensation and reward strategies to life. Our tech and service-based offering was created to empower you and employees to easily navigate their workplace incentives with confidence.
Please Note: This publication contains general information only and J.P. Morgan Workplace Solutions is not, through this article, issuing any advice, be it legal, financial, tax-related, business-related, professional or other. J.P. Morgan Workplace Solutions’ Insights is not a substitute for professional advice and should not be used as such. J.P. Morgan Workplace Solutions does not assume any liability for reliance on the information provided herein.
