Transfer agents are focused on putting the satisfaction of their issuers and their shareholders first. When you choose to use a single provider for your transfer agent and equity plan administration needs, processes are more streamlined and can result in time and cost savings. This can also result in benefits you might not have access to if you utilize different vendors. Some key benefits to consider are:
Proper equity plan administration is a highly complex process. Instead of adding to the complexities, your plan administrator should simplify them for you. From a share movement and reconciliation perspective, having one provider act as both the transfer agent and the equity plan solutions provider, can be an extremely efficient process. As one of the core responsibilities of a transfer agent is to maintain and manage records for their clients, the equity plan solutions team would work seamlessly with the transfer agent team to request share movements and process equity award transactions.
EQ acts as transfer agent to approximately three quarters* of our equity plan solutions clients. At EQ, we conduct a daily reconciliation so share balances are always in sync. We work to bring employee plan programs to life through EquiTrax™, our integrated compensation solution that gives you the information you need to make impactful business decisions.
2. Transfer Agents are equity experts
A transfer agent can help you manage your equity compensation plan by leveraging their specialized equity expertise to make sure you stay compliant and your shareholders' assets are protected. Unlike other equity plan providers, transfer agents are also corporate actions experts. When you use one provider for both services, the seamless execution of corporate actions goes hand in hand. A corporate action could affect your shareholders, including your equity plan participants, which may include executives or board members. Transfer agents understand and can manage the entire corporate action from beginning to end while keeping your equity plan participants and shareholders informed and satisfied with complex transactions.
By choosing a provider to administer your equity plan and act as your transfer agent, you can save time and money. For instance, the recent changes to settlement cycles on any U.S. securities trade from T+2 to T+1, trimmed the settlement cycles for securities trades from two days to one. A transfer agent can provide comprehensive support to shareholders throughout the dematerialization process.
For example, for some investors, one-day settlement cycles may be more convenient. Yet for other investors, T+1 may affect their investment, trading, or tax decisions. As a transfer agent, we recommend companies request their shareholders deposit share certificates in book entry. Encouraging them to convert their physical certificates into electronic form facilitates faster and more efficient transactions.
3. Taking care of shareholders is core to our business
We take care and pride when providing support to your shareholders. At EQ, we service 19.8 million shareholders annually in the U.S. with our call center achieving a 90% first-call resolution*.
At their core, transfer agents serve shareholders on behalf of issuer clients. This includes providing an expert support team to ensure quick solutions for issuers and a call center staffed with trained professionals for plan participants. It also means investing in leading-edge financial technology to simplify processes for everyone.
4. We have your best interests at heart
EQ is an impartial provider of equity solutions, ensuring that neither your executives nor your employees are pressured into entering an individual brokerage relationship.
Transfer agents will not solicit your employees for extraneous brokerage services or your executives to switch to a different wealth advisor. Our focus is on doing what's best for your company and that starts with satisfied employees and shareholders.
5. Listening to feedback
One of the best metrics for determining a financial expert’s success is feedback from the clients they serve. A transfer agent should encourage communication between all participants in the equity process so that client’s needs can be effectively met. As a provider for both equity awards and shareholder services, transfer agents understand how important your employees are to you. While full-service brokerages, discount brokers, and self-administration plans may offer a few of the same advantages, work with a provider that understands your business and offers advanced technology, equity expertise, and seamless shareholder support.
*Based on EQ proprietary data as of June 2024.
**Based on client feedback in the Group Five 2023 Shareholder Services Benchmarking Study
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