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As companies offer more types of stock plan awards to a wider group of employees, the need for more comprehensive stock plan education is greater than ever.
Non-executive level employees lack understanding of company stock plans, employers say.
- Using an academic scale to grade the level of understanding about the company stock plan, 36 percent of respondents gave their non-executive employees a "C" grade.
- Executive level employees received higher marks from survey respondents, but still only 55 percent of respondents gave their executives an "A" for their level of understanding of company stock plans.
Level of Understanding of the "Plan Overall" by Level of Employee
Executive Level Employees Non-Executive Level Employees
Q9-10. Please think about the level of understanding your executive level/non-executive level employees have of your company's stock plan. If you used an academic scale to grade your (level of employee) on their understanding of the stock plan benefits and features, which letter grade would you give them on each of the following?
The greatest challenge is educating employees about stock plans, respondents say.
- Schwab found nearly half of survey respondents (48%) consider educating employees about the features and benefits of their stock plan a "significant challenge."
- But they are poised to take on the challenge: 78 percent say that education employees on the stock plan value and benefits will be an important focus for their company during the next two years.
Significant Challenges in Offering Stock Plan
Q9-10. Which of the following, if any, do you consider to be the most significant challenges in administering your stock plan?
Companies are taking numerous steps to educate employees.
Employers have already begun to deploy a variety of educational activities to increase employee knowledge of the benefits and workings of their company stock plan, such as:
- Including information in new hire benefits information packets (64%)
- Providing information on the employee Web site (63%)
- Including stock plan information details in any discussions of overall employee benefits packages (59%)
- Scheduling one-on-one employee consultations with the stock plan provider (25%)
To Assist with Education of Benefits of the Stock Plans, Companies Offer...
Q14. Which of the following, if any, are you offering employees to educate them about the availability and benefits of your company's stock plans?
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