Stock Plan Education Protects Against Surprises
In an environment of corporate scandal, perhaps no single issue has brought greater public outrage than the losses employees suffered from poorly diversified retirement plan holdings. The troubles stemming from Enron employee losses have spilled onto the corporate landscape and, now more than ever, management and employees alike will be receptive to stock plan education initiatives. Public companies should address these issues proactively with careful plan design that helps shield employees from costly mistakes. They also should play an important role in educating employees about the full potential impact of company stock ownership. Total rewards professionals need to be the champions of the employee education effort, rather than relying solely on the stock administrator. Not all equity plan service providers ? stock administrators, brokers and transfer agents ?offer employee education programs. Stock plan education has not been a traditional profit center for financial services companies and few have the focus to personalize training to address the particulars of a company?s stock plan.