Drive operational excellence with equity process assessments

Administering equity compensation plans in a publicly traded company is inherently challenging, particularly for organizations experiencing rapid growth or those that have recently undergone an initial public offering (IPO).

The introduction of the SEC's t+one requirement — mandating that shares be released to employees within one day of vesting — has intensified the need for streamlined processes within equity compensation. Errors in payroll and equity reporting can lead to costly fines and reputational damage, while resource constraints often hinder timely and accurate processing.

Organizations must now tighten their share release cycles, establishing processes that are efficient and error-free. Explore how equity process assessments can help organizations identify inefficiencies, mitigate risks, and enhance overall performance.

Key challenges in equity administration

Several challenges can hinder effective equity administration:

• Tightened Timelines. The T+one requirement has reduced the timeframe for processing equity releases, leaving little room for errors.
• IRS Remittance. Companies face stringent IRS requirements, especially when income exceeds $100,000, requiring remittance within 24 hours.
• Resource Constraints. Administrative functions often operate with limited staff, leading to increased workloads and potential oversights.
• Complexity of Processes. The growing variety of compensation types and the involvement of multiple stakeholders add layers of complexity to equity administration.
• Stakeholder Pressures. Stock administration teams must navigate demands from various departments, including payroll, accounting, and HRIS.