Transfer Agent Excellence

When considering a transfer agent provider, key criteria to keep in mind are:

1. Depth of knowledge, both regulatory and industry-specific, that only years of experience can deliver.
2. Reputation, measured by credentials like excellent customer service, client retention and high satisfaction scores from clients.
3. Strategic use of technology-based solutions, including best-in-class data and web platform solutions, cybersecurity, fraud prevention and disaster recovery.

From an operations perspective, look for performance, both in terms of impeccable transaction execution and regulatory knowledge. An experienced transfer agent should also be committed to understanding your business and anticipating your needs. In addition, look for a provider that can deliver proactive guidance from dedicated experts your team can turn to with questions or challenges.

Few companies have an in-house, full-time employee who is solely focused on shareholder services, so keeping abreast of fast-moving industry changes and market trends can be difficult. A dedicated transfer agent serves that role, combining an understanding of your business and priorities with expertise in navigating interactions with all outside teams including brokers, lawyers, investment banks and more.

 

Diverse experience across transfer agent operations, equity plans, corporate actions and shareholder engagement throughout all critical events across your company lifecycle.
 

Let’s look at two case studies that demonstrate the value of EQ’s expertise beyond transfer agent services.

Situation

An existing 30-year client in the technology space needed a new flexible equity plan solution. The client wanted to transfer its plan over as a cash award and allow its employees to see the real-time market value of its stock on its dashboard.

The client was pleased with EQ’s transfer agent services knowledge and experience. Because of its status as a trusted advisor, the client approached EQ for this new project. 

Solution

EQ worked closely with the client’s compensation team to understand their needs. Transfer agent and equity plan solutions (EPS) relationship managers collaborated and determined that the EQ EPS platform could convey the company’s compensation awards as needed. The team proposed an employee equity plan set up as a restricted stock unit (RSU) that would be settled in cash which met the company’s ask to transfer the plan over as a cash award. This also allowed the company’s market stock price to be reflected in real-time on its dashboard to its participants.
 

Results

EQ’s services beyond transfer agency tasks allowed it to be chosen as its client’s new equity plan provider. Using a single provider created greater process efficiencies and cost savings for the client, boosting its overall satisfaction. 

Situation

A long-standing multinational transfer agent client sought EQ’s corporate actions knowledge and experience for a complex exchange offer involving more than 1,000 global shareholder entities, multiple classes of shares and a share value worth billions of dollars. This offer carried unique documentation requirements and had an intricate technical transaction process that required processing large volumes of transactions in a tight timeframe.

Solution

EQ’s cross-functional team of experts included transfer agent and information agent teams as well as administrative teams in corporate actions, finance, technology, processing, correspondence and data. They collaborated to create a tailored online platform to simplify submission of required documentation as well as to provide necessary communications. The effort took months of strategic planning, and the execution occurred over a four-week transaction period.

Two key elements of the solution were a secure, dedicated online platform and a robust call center. The online platform:

• Provided a secure, end-to-end conduit for shareholders to submit their required documentation and exchange elections
• Saved time and maintained accuracy and efficiency
• Eliminated the wait for physically mailed exchange offer letters of transmittal — with more than 200 million shares to be processed in a tight four-week window, this was critical
• Communicated the details of the complex corporate action and gave explicit instructions on how shareholders could participate, which led to a high shareholder participation rate

The call center agents were specifically trained and had access to multimedia resources and tools that provided thorough information to shareholders and addressed specific shareholder inquiries such as how to calculate conversion rates, whether there were any trade restrictions and what payment options were available. 

The client also hosted a shareholder-facing conference call that included its EQ relationship manager, who addressed questions related to the exchange.

Results

EQ’s relationship management team’s industry experience, combined with the expertise of the corporate actions team and the execution of the transfer agent operations team, enabled EQ to seamlessly execute this complex transaction.
 
The client was extremely satisfied with EQ’s solution. The exchange offer achieved substantial shareholder participation, including involvement from the client’s largest shareholders, and delivered higher shareholder satisfaction.
 

We have been a trusted shareholder support services advisor to companies of all sizes. As your trusted advisor, we’ll deliver expert guidance with a collaborative, consultative and high-touch approach that drives your business. EQ can offer you:

• A comprehensive set of services
• Seamless execution
• Unparalleled shareholder support
• A data-driven approach
• Transparent pricing