Losing senior people to competitors can be a major cause of concern, with disruption to plans, loss of knowledge, skills, leadership and continuity all impacted. The recently published J.P. Morgan Workplace Solutions Trends in Equity Compensation: Report 2024 revealed that for 97% of public companies executives were offered either blended or fully equity-based incentives, while 83% of overall companies confirmed an equity compensation element forms part of their C-suite executives’ remuneration package.
Of the findings Ryan Shreero, Executive Director Workplace Solutions, asks companies to consider is their executive equity compensation offering truly unique?
“Reading through our survey results it’s immediately obvious that looking after executives remains a top priority for companies, with 97% of public companies offering this cohort some form of equity based compensation. This is no surprise given their vital roles in the leadership, strategy and operations of both public and private companies.”
“Attracting and retaining these key players is a major focus for HR and Compensation & Benefits teams – but how can your company differentiate themselves from the herd?”
“It’s time to look beyond the traditional elements and consider add-ons, enhancements and additional benefits to customize your rewards package and stand out in this competitive environment.”
“When it comes to implementing or enhancing an equity compensation plan it’s not always about trying to reinvent the wheel, but rather consciously examining your plan design itself, watching for trends and looking at what other companies are doing well. This could end up shining a light on what may be lacking.”
“Taking this view, consider how you currently provide education on types of equity compensation securities and tax treatment. Do you have the ability to offer comprehensive financial advisory and planning information to your executives?”
“Leveraging your vendors to customize an Executive Services platform is one potential way to enhance your current offering with little to no company investment. This can provide company officers and executives vital tools to maximize the equity they have been granted through strategic solutions tailored for control and concentrated holdings such as 10b5-1 diversification, block trading, lending and pledging and hedging.”
“Looking slightly further afield there is the potential to incorporate financial wellness check-ups or even provide details about gifting and philanthropy, like GRATS (Grantor Retained Annuity Trusts) or Donor Advised Funds.”
“It’s time to move beyond ‘golden handcuffs’ and really consider what you can bring to the table to make your executive equity compensation offering outstanding.”
To read the full report and get more insights like this you can download a copy of the report for free here.
What next?
At J.P. Morgan Workplace Solutions we work with companies from around the world every day to help them bring their equity compensation and reward strategies to life. From plan design, to communications and executives services our offering was created to empower employees to easily navigate their workplace incentives with confidence.
Get in touch to speak to one of our experienced customer success managers about how we could help you.
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.
