Introducing the UBS Equity Award Value IndexTM, a groundbreaking tool for measuring how employees perceive the value of their equity compensation.
UBS Participant Voice is a new semi-annual survey designed to generate insights that can help companies make equity compensation programs a more attractive benefit. The inaugural issue focuses on measuring how employees perceive the value of their equity awards.
Introducing the UBS Equity Award Value Index™
Each year companies grant more than $110 billion of equity compensation.* But how much do employees value these awards? To find out, UBS surveyed almost 600 participants from a cross-section of industries, companies and service providers. The resulting UBS Equity Award Value Index explains how employees view their equity based on five variables:
1. View of equity compensation
2. Importance in taking a job
3. Importance for staying at a company
4. Importance in accumulating wealth
5. Importance of incorporating equity compensation into long-term financial planning
We found that the more vesting experience employees have with awards, the more they value them. In fact, we identified three critical "tipping points" of experience:
≥ 6 vestings: The equity is viewed as a way to build wealth.
3-5 vestings: The equity is viewed as a paycheck supplement.
<3 vesting: The equity is viewed as a lottery ticket.
That's not all. UBS Participant Voice dives deeper into the characteristics that define the three distinct participant types, from how they feel about their personal finances to how they work with financial advisors. To learn more, read the full report .