Trends in Equity Compensation: Report 2024

Post contributed by

December 17, 2024

J.P. Morgan Workplace Solutions

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Taking a closer look at the current state of equity programmes across the world, J.P. Morgan Workplace Solutions’ Trends in Equity Compensation: Report 2024 delves into the current challenges and benefits experienced by companies in relation to employee equity compensation.

More than 200 equity compensation professionals from industries around the globe responded. These key stakeholders included HR, comp & benefits and finance workers – the people who actually run their companies’ equity programs.

The results reveal how companies of all kinds are currently seeking to recruit, reward and retain the best talent by creating a culture of ownership. They also tell a story of the pain points that spring up along the way.

Some key findings:

Four out of five companies offer their C-suite executives access to an equity plan.

One in three revealed they have difficulty with equity compensation reporting.

Almost half cited struggling with participant communication and education as a pain point.

Recruitment and aligning objectives

When it comes to recruiting new employees, 72% of respondents reported that having an equity compensation plan gives them a competitive edge during the hiring process.

In terms of aligning employee goals and objectives with those of the company and its stakeholders, 84% of respondents revealed this was a central reason for why they chose to introduce an equity plan in the first place.

Plan types offered

Interestingly, many respondent companies offer more than one type of equity plan. The results show that restricted stocks (60%), performance awards (52%), stock options (44%) and ESPP (25%) are among the most popular.

The emphasis on restricted stocks and performance coming through in the results speaks to the widespread use of equity compensation to attract, motivate and retain those in leadership roles.

Executive equity compensation

Employers view granting those in leadership and key-decision makers a share in the performance of the company as a major component in their benefits package, with 83% of respondents confirming that an equity compensation element forms part of their C-suite executives’ remuneration package.

It is insightful to note that only 3% of public companies do not offer their executives incentives, either in the form of blended (cash and equity) or fully equity-based.

Communication and education

Almost half of companies revealed they struggle, with participant communication and education with plan complexity in particular perceived as a hinderance to increased participation rates.

Other common pitfalls cited include under-promoting the plan to participants, losing sight of the target audience and not knowing how to measure success.

You can download the full report for free here.

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Please Note: This publication contains general information only and J.P. Morgan Workplace Solutions is not, through this article, issuing any advice, be it legal, financial, tax-related, business-related, professional or other. J.P. Morgan Workplace Solutions’ Insights is not a substitute for professional advice and should not be used as such. J.P. Morgan Workplace Solutions does not assume any liability for reliance on the information provided herein.

J.P. Morgan Workplace Solutions is a brand name for equity compensation administration business conducted by Global Shares and other financial products and services offered through J.P. Morgan Securities LLC and other affiliates of J.P. Morgan Chase & Co.

Global Shares is a trading name of the legal entities described hereafter including Global Shares Ireland Limited (“Global Shares Ireland”), a company registered in Ireland, registration number 412396 with its registered office at Unit 2, Building D, West Cork Technology Park, Clonakilty, Co, Cork, Ireland which provides share plan administration services and software. Global Shares Inc. (“Global Shares US”) is incorporated in Delaware and provides share plan administration services and software to certain U.S. Companies.

For securities traded in United States markets, Broker Dealer Services are provided by Global Shares Financial Services, Inc. (“GSFS”), Member FINRA/SIPC, 575 Washington Blvd, Floor 09, Jersey City, NJ, 07310-1616, (646) 968-0653. Check the background of Our Firm on FINRA’s BrokerCheck.

Global Shares Trustees Ireland Limited, Global Shares Trustees (UK) Limited, and Global Shares Trustees Company Limited (collectively, the “Trust Companies”), are Irish and UK trust companies that provide limited trust services for corporate share plans.

Global Shares Execution Services Limited (“GSESL”) is licensed to conduct investment services business under the Investment Services Act as authorised by the Malta Financial Services Authority (“the MFSA”) pursuant to licence number GSES-IF-14206. GSESL offers receipt and transmission of orders and nominee services under its provision of business. The registered address is at 171, Old Bakery Street, Valletta, VLT1455, Malta. Global Shares Ireland, Global Shares US, GSFS, the Trust Companies, and GSESL are affiliated companies and all under the common control of JPMorgan Chase & Co.

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