December 16, 2013

UBS Study: Experience with Equity Vesting Changes Attitudes

Executive Director

UBS released a study that documents changes in attitudes about equity compensation and wealth management as employees have increased experience with such plans. The study, the UBS Equity Award Value Index™, concludes that employees who have six or more vesting experiences tend to see equity compensation as "a way to build wealth." Those with three to five vestings tend to see equity compensation as "a paycheck supplement," while those with two or fewer vestings are most likely to see equity compensation as a "lottery ticket." They also found that those with less equity compensation experience were less likely to see equity compensation as an important motivation for taking a particular job (19% for those with fewest vestings versus 48% for those with most) and for staying at a job (29% for those with fewest vestings versus 51% for those with most).