As COVID-19 creates uncertainty in the financial markets, UBS pursued a follow up study, UBS Participant Voice: Critical Advice, to determine how participant perception of value changes in times of crisis. UBS surveyed 319 plan participants in May to understand the impact of COVID-19 on their view of equity awards.
The follow-on study finds that while perception of equity award value has seen a minor decline during the pandemic (34% of participants assign a high value to their equity awards after the onset of COVID-19, compared to 42% before), long-term optimism remains strong. Three-quarters of respondents report feeling optimistic about the future of both their company (75%) and their industry (75%).
Participants say that in times of crisis they need communication and more guidance. Ninety-three percent (93%) say that communication is very effective at helping them understand how COVID-19 impacts equity compensation. Eighty-six percent (86%) desire more guidance. This is true regardless of age, gender, or assets.
Plan sponsors should note the impact uncertainty can have on perceived value and take steps to ensure consistent, proactive, and well-planned communication is a priority. In addition, employers can assess which additional resources can provide the increased guidance that employees seek.
Companies expend a multitude of resources in designing, implementing, and maintaining their equity plans. It is critical to understand how these efforts translate to the value employees attribute to their awards. The findings in UBS’ participant studies provide important insights into participant attitudes along with a roadmap of actions companies can take to increase perceived value.
View the full reports for UBS’s participant studies.
Technology Tips for Engaging Remote Participants
The remote activities that are happening today via video and social technology platforms – workplace team collaboration, student education and even the good ol’ happy hour &ndas...Read More
5 Tips to Support Stock Plan Participants Through a Crisis
Crisis can take on many forms. There are crises that can be company specific – like in the situation where a pharmaceutical company awaited FDA approval for a drug, only to learn that...Read More
Financial Wellness Programs: Why Equity Compensation Should be Included
It’s a brand new year. It’s a brand new decade, actually. Many of us consider the turnover to a new year as a time to reflect on past successes and failures, think about the future, set...Read More
Year-End Resources for Administrators and Participants
With the end of the year approaching, it’s time for me to highlight some of the resources available to get you and your stock plan participants smoothly through year-end planning and processe...Read More
Examining Equity Plan Participant Attitudes and Behaviors
Across my desk this week – Charles Schwab’s Stock Plan Services released results of research they’d conducted on the attitudes and behaviors of 1,000 equity plan participants. Som...Read More