UBS Survey Reveals How Employees Can Maximize Perceived Value of Company Stock Awards
September 07 2016 - 10:00AM
Business Wire
Together, planning, advice and diversification
increase the impact of equity compensation
Today UBS Wealth Management Americas announced the findings from
the third edition of UBS Participant Voice, an industry wide survey
of equity plan participants, which reveals how they can perceive
more value from their equity awards. This year's edition, "The
multiplier effect," found that 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.
"Clearly, a more active approach to managing equity awards can
lead to greater employee satisfaction, which is what companies are
ultimately trying to achieve," said Michael Barry, Head of UBS
Equity Plan Advisory Services. "Companies and plan providers should
be advising employees on how to make the most of their equity
compensation."
The multiplier effect
The UBS Equity Award Value Index measures the value employees
place on equity awards. According to UBS Participant Voice, three
key factors lead participants to value their equity compensation
more. Employees who seek advice on managing equity compensation,
incorporate their awards into an overall financial plan and
diversify their holdings scored 55 on the value index, vs. 27
(minimal value) for employees who did not adopt any of those
behaviors. Among participants who took none of these actions, only
36% are confident that they will achieve their financial goals.
Employees who take one of these steps feel better about their
financial wellness. Sixty-nine percent of employees who incorporate
equity awards into their financial plans feel confident about
achieving their financial goals vs. 43% of those without a plan.
Similarly, 61% of employees who receive equity compensation advice
feel highly confident about retirement vs. 41% who have not
received help from a financial advisor.
Employees see the most value in advice on diversification
strategies, managing the risks of concentrated positions and
setting a target price for selling shares. For example, employees
who incorporated their equity awards into their diversification
strategy scored 50 on the UBS Equity Award Value Index, vs. 38 for
employees who did not.
A leader in equity compensation
UBS Equity Plan Advisory Services, part of UBS Financial
Services Inc., is dedicated to helping companies and their
employees maximize the value of equity awards. As part of our
commitment, we provide education and access to advice to equity
plan participants at all compensation levels in the U.S. and in
many countries throughout the world. Our advice is rooted in our
broad experience and insights as a leading wealth management firm.
Serving more than one million participants in over 150 countries at
170 companies, UBS offers custom plan administration and
transaction solutions through both full and partial administration
services.
Notes for Editors
About UBS Wealth Management Americas
Wealth Management Americas is one of the leading wealth managers
in the Americas in terms of financial advisor productivity and
invested assets. Its business includes UBS’s domestic US and
Canadian wealth management businesses, as well as international
business booked in the US. It provides a fully integrated set of
wealth management solutions designed to address the needs of ultra
high net worth and high net worth clients.
About UBS
UBS provides financial advice and solutions to wealthy,
institutional and corporate clients worldwide, as well as private
clients in Switzerland. The operational structure of the Group is
comprised of our Corporate Center and five business divisions:
Wealth Management, Wealth Management Americas, Personal &
Corporate Banking, Asset Management and the Investment Bank. UBS's
strategy builds on the strengths of all of its businesses and
focuses its efforts on areas in which it excels, while seeking to
capitalize on the compelling growth prospects in the businesses and
regions in which it operates, in order to generate attractive and
sustainable returns for its shareholders. All of its businesses are
capital-efficient and benefit from a strong competitive position in
their targeted markets.
UBS is present in all major financial centers worldwide. It has
offices in 54 countries, with about 34% of its employees working in
the Americas, 35% in Switzerland, 18% in the rest of Europe, the
Middle East and Africa and 13% in Asia Pacific. UBS Group AG
employs approximately 60,000 people around the world. Its shares
are listed on the SIX Swiss Exchange and the New York Stock
Exchange (NYSE).
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Media InquiriesUBSNew YorkPranita Sookai,
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