Equity Compensation That Drives Real Employee Outcomes

From Ownership to Outcomes

Equity compensation has long been viewed as a valuable reward. But is it really driving engagement, strengthening retention, and helping employees achieve greater financial security?

To find out, Fidelity Stock Plan Services surveyed more than 25,000 stock plan participants in more than 100 countries. The results paint a compelling picture: equity is doing far more than delivering compensation. When employees understand and value their plans, equity can become a powerful catalyst for workforce engagement, financial confidence, and long-term loyalty.

Equity Creates a Stronger Connection Between Employees and Company Success

One of the clearest findings from the research is that employees recognize the link between their efforts and company performance.

Nearly eight in ten participants (78%) said they believe their work contributes to their company's success and stock performance. More than six in ten reported that their stock plan gives them a sense of ownership in the company. A similar percentage said they work harder knowing their efforts can contribute to share value growth.

These perceptions matter because they reflect one of the primary goals of equity compensation: creating owners, not just employees.

Participants repeatedly described equity as a benefit that makes them feel invested in company success and more connected to organizational outcomes. Many viewed stock ownership as fundamentally different from receiving cash compensation because it creates an ongoing stake in the business.

Equity Supports Attraction and Retention

Employers often justify equity programs based on their ability to attract and retain talent. The survey findings suggest those expectations are well founded.

Sixty-five percent of participants said stock plan benefits are an important consideration when accepting a job, and 56% reported they are more likely to stay with their employer because of the stock plan benefits available to them. Additionally, many participants indicated that giving up their equity benefits would make changing jobs more difficult.

The impact is even more pronounced among participants who receive both long-term incentives and participate in an employee stock purchase plan (ESPP), a combination that consistently produced some of the strongest outcomes across measures of engagement, satisfaction, and loyalty.

Equity Is Both a Wealth Builder and a Financial Safety Net

Perhaps the most interesting finding from the research is that employees don't view equity solely as a long-term investment.

Most participants intend to use at least some of their equity to support long-term goals such as retirement and future savings. In fact, 71% view their stock plan as part of their long-term financial plan, and 61% expect to use stock plan assets to help fund retirement.

At the same time, employees are also relying on equity to address more immediate financial needs. More than half see their stock assets as a financial safety net, and many reported using proceeds for debt repayment, emergencies, major purchases, education expenses, and home ownership goals.

This dual role challenges the traditional notion that selling shares represents a failure of employee ownership. For many participants, equity provides both long-term wealth accumulation and short-term financial resilience. That's not a contradiction; it's a sign that equity is serving multiple valuable purposes in employees' financial lives.

Equity Often Serves as a Gateway to Investing

The research also highlights how stock plans help employees build financial capability.

Forty-three percent of participants became first-time stock owners through their employer's stock plan. Even more notable, approximately one-third of those first-time investors went on to invest outside their company stock plan.

For many employees, equity compensation provides a comfortable introduction to investing, helping them develop saving habits, learn about markets, and gain confidence managing financial assets. Rather than simply delivering compensation, stock plans can become an important entry point into broader financial wellness and wealth-building behaviors.

Understanding Drives Better Outcomes

While the overall results are encouraging, one factor consistently stood out as a key differentiator: participant understanding.

Employees who reported a strong understanding of their stock plan demonstrated higher levels of motivation, stronger feelings of ownership, greater appreciation of stock plan value, and improved attraction and retention outcomes. They were also more likely to report increased financial confidence and greater satisfaction with their plans.

The opportunity is clear. Most participants understand basic plan mechanics, such as accepting awards or tracking vesting schedules. However, confidence drops significantly when it comes to more complex decisions involving taxes, diversification, exercising options, and determining when to sell shares.

Participants told us they want more help with these decisions, and the data suggests that education matters. Individuals who engaged with stock plan communications and educational campaigns consistently reported better outcomes than those who did not.

Three Levers for Better Outcomes

The survey points to three areas where employers can maximize the impact of their equity programs:

1. Communication and education: Participants who engage with educational content report better understanding, confidence, and satisfaction.
2. Financial planning support: Participants working with a financial planner reported higher levels of motivation, confidence, and perceived plan value.
3. Thoughtful plan design: Specific to ESPP, more attractive plan design significantly influences participation, engagement, and sentiment.

The Bottom Line

The findings reinforce what many stock plan professionals have long believed: equity compensation works.

It connects employees to company success. It helps attract and retain talent. It builds financial confidence. It supports both everyday financial needs and long-term wealth creation.

Most importantly, the research shows that employers are not simply granting shares. They are creating opportunities for employees to become owners, investors, and more financially resilient individuals.

The organizations that achieve the strongest outcomes will be those that pair strong plan design with effective education, communication, and support. When that happens, equity becomes much more than compensation. It becomes a bridge between ownership and meaningful financial outcomes.

If you are ready to dive into the survey details, check out the full report, 2026 Global Participant Research, and our detailed data deck, 2026 Global Participant Research Detailed Deck.

For more resources, visit the Participant Education for Stock Plans section on NASPP.com.

Disclaimer: The NASPP and Fidelity Investments are not affiliated.  Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation. 1282519.1.0