Employees recognize the value of their stock plan benefits, yet many lack the knowledge needed to maximize them. According to recent survey:

• 56% of U.S. employees cite equity compensation as a key reason for staying with their employer.
• Yet, fewer than half (45%) know how to access guidance on their stock plan benefits.
• Many employees struggle with taxation, diversification strategies, and vesting schedules, leaving them ill-equipped to make informed financial decisions.

Without education and a clear understanding of their equity plans, employees may undervalue these benefits or fail to incorporate them into their long-term financial strategies.

A lack of equity education can create unintended consequences, including:

• Tax surprises – Unfamiliarity with tax implications can lead to unexpected liabilities, causing financial stress.
• Missed financial opportunities – Without guidance, employees may make premature sales, fail to diversify, or overlook wealth-building strategies.
• Weakened retention and engagement – Employees who don’t see the long-term value of equity compensation may be more likely to leave for higher salaries elsewhere.

For employees to fully benefit from their equity compensation, education must go beyond basic presentations or written FAQs. Employers should adopt a multi-faceted strategy that ensures employees have the information and resources they need at each stage of the equity lifecycle.

Employers should consider the following strategies to support their workforce:

• Partner with a Financial Counseling Provider – Equity compensation is complex, and most employees need guidance to make informed decisions. Partnering with a financial counseling provider gives employees access to experienced advisors who can help them navigate their stock plan benefits, understand tax implications like withholding rates and capital gains, and implement tax-efficient strategies to maximize long-term wealth.
• Educate Employees on Key Triggers – Employees should be prepared for vesting events, tax obligations, and strategic decision points that affect their equity holdings. Proactively providing education at these moments helps prevent costly mistakes.
• Use Engaging Communication Channels – A combination of one-on-one counseling, webinars, interactive tools, and digital resources helps employees access guidance in a way that resonates with them.

At Cerity Partners, we work with employers to integrate financial planning strategies into their workplace benefits, helping employees have access to seasoned financial guidance. Our team of advisors helps employees:

• Understand their equity compensation and make informed decisions about their awards
• Navigate tax implications to optimize wealth-building opportunities and avoid surprises.
• Align their equity awards with broader financial goals, including retirement, estate planning, and long-term investment strategies.
• Receive personalized financial counseling tailored to their unique needs and career trajectory.