Making Equity Compensation Plans More Inclusive for Women

Women are less likely to own stocks or join equity programs. Here’s how companies can make equity plans more inclusive and why it matters.

Research from Financial Health Network shows that 72% of women experience financial stress, compared with 53% of men.
  1. 1
    Higher Retention

    While there is no perfect solution for recruiting, retaining and advancing women, equity compensation programs may help close that gap. Had Sarah’s organization offered a broad-based equity compensation program early in her career, she may not have left. Organizations with these types of programs tend to have less voluntary turnover and higher retention rates, including higher retention of women.7

  2. 2
    Increased Retirement Savings and Improved Financial Security

    On average, women have less saved for retirement than men but are expected to live longer.The potential shortfall of retirement savings can be a significant source of stress—and thus workplace distraction—for women. ESOPs and ESPPs may help alleviate that concern by generating higher savings, improving financial confidence and putting Sarah in a better position to meet her retirement goals.9

  3. 3
    A Great Place to Work

    Most businesses want to be known as a great place to work, as it may attract talent, help retention and make life at work better. Equity-based compensation may help support that goal. Employees with access to equity programs are more likely to report that their employer has a collaborative culture, that they are getting a fair share of compensation and that their company is an “excellent place to work.”

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