Highlights
- Transfer agent client of 30 years needed a new equity plan solution that was easy to use and had the capability to reflect their stock market price in real-time.
- Both transfer agent and equity plan solutions relationship managers worked closely with the client’s compensation team to ensure their equity plan program needs were met.
- The long-standing client was very satisfied with EQ's expertise in implementing a flexible employee equity solution.
Situation
A technology company who has used EQ’s transfer agent services for the past 30 years was looking to find a new equity plan solutions provider. Throughout the long-standing relationship, EQ has provided this technology company with transfer agent services from executing their dividend disbursements, to tabulating their annual meetings. This client has also worked with D.F. King to provide them with essential proxy solicitation services in connection to their annual general meeting.
When it came time for this client to find a new equity plan solutions provider, they approached EQ, as they were already familiar with EQ’s transfer agent expertise and considered us a trusted advisor. EQ undertook a due diligence process to fully understand their employee compensation program needs. It was outlined that the client wanted to transfer their plan over as a cash award and wanted their employees to see the real-time market value of their stock on their dashboard.
Solution
A full demonstration of EQ’s equity plan solutions platform was performed to show how the platform can convey their compensation awards. Upon completion of the demonstration, this client was thoroughly satisfied with EQ’s equity compensation expertise and knowledge, and a contract was signed.
To ensure the success of the transfer of their plan as a cash award, both the equity plans and transfer agent relationship managers collaborated to propose to the client that their employee equity plan be set up as a restricted stock unit (RSU) that would be settled in cash. Setting up their plan as an RSU also made it possible for their market stock price to be reflected in real-time.
Results
Due to EQ’s ability to provide services beyond those of a transfer agent, the client was able to hire EQ as their provider for their equity plan programs. The flexible solution allowed the client to transfer their plan over as a cash award as well as provide a real-time market value of their stock on their dashboard to their participants. This long-time client was very satisfied with EQ's expertise in implementing an employee equity solution that met their needs. In addition, having EQ as a transfer agent and equity plan provider generated the opportunity for greater process efficiencies and cost savings, boosting this client’s overall satisfaction.
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