Advice on Equity Compensation Can Increase Retirement Security

UBS Wealth Management Americas’ third edition of UBS Participant Voice, an industry wide survey of equity plan participants, called “The multiplier effect,” found 45% of employees see little value in equity awards, even though companies grant billions in equity awards each year.

However, when employees take three specific actions—planning, advice and diversification—they perceive twice as much value in their equity compensation. Among participants who took none of these actions, only 36% are confident that they will achieve their financial goals.

Sixty-nine percent of employees who incorporate equity awards into their financial plans feel confident about achieving their financial goals versus 43% of those without a plan. Similarly, 61% of employees who receive equity compensation advice feel highly confident about retirement versus 41% who have not received help from a financial adviser.

Employees see the most value in advice on diversification strategies, managing the risks of concentrated positions and setting a target price for selling shares.