Amid complex workplace dynamics, companies are seeking innovative strategies to effectively engage, attract and retain top executive talent. Explore key takeaways from our recent virtual discussion to get insights from industry leaders on how to meet these executives’ multifaceted needs.
Executive engagement is often the driving force of corporate success and employee loyalty. To uncover industry trends and identify tools companies can use to better support and retain executive talent, Kate Winget, Chief Revenue Officer at Morgan Stanley at Work, sat down for a virtual discussion with Meghan Carrasquillo, Executive Director, Executive Financial Services, and John Husson, Executive Director, Deferred Compensation Plan Consulting, along with Jim Neuwirth, President of research firm 8 Acre Perspective. Below are some key insights from their discussion:
Executive Personal Priorities Are Evolving
Given the critical role the executive team plays in driving corporate performance, it is important for workplace benefits leaders to understand what executives value most.
Although there is no simple answer, research points the way. For instance:
- 96% of executives are interested in gaining a consolidated view of their workplace and non-workplace wealth.1
- 63% of executives are very interested in receiving more personalized financial guidance.2
- Executives would prefer to receive financial guidance through one-to-one expert consultations rather than through self-serve tools.3
“Executives need support around both their financial benefits and with financial planning more broadly,” Neuwirth explained. “They want to work with Financial Advisors who can answer questions about wealth management, estate planning, tax optimization and equity compensation.”
These are all key insights for workplace benefits leaders looking to better support company executives by making sure they have access to advice around their personal financial lives as well as the financial implications associated with their nonqualified deferred compensation (NQDC) programs, Rule 10b5-1 trading plans and IPO readiness.
Growing Demand for Nonqualified Deferred Compensation (NQDC)
To provide highly compensated employees such as executives with the opportunity for tax-deferred savings, companies are exploring the benefits of NQDC plans. In fact, 59% of plan sponsors say NQDC plans play a vital role in their executive attraction, retention and satisfaction strategies.4
“Both large and mid-market organizations have to compete for the same executive talent, prompting them to evolve their strategies by adding nonqualified compensation to their offerings,” John Husson said. “To help their people build more meaningful wealth through employer-sponsored programs, companies need guidance.”
Given the complex decisions executives face when it comes to NQDC participation, education will also be paramount. Most plans sponsors agree that this may call for a high-touch approach to help executives evaluate their options.5
10b5-1 Plan Advisory Plays a Critical Role
In a similar vein, advisory assistance is paramount to planning and executing executive trading activity with discipline and transparency, as demonstrated by the growth of 10b5-1 plan usage.
- 97% of surveyed companies reported insider use of Rule 10b5-1 trading plans, up from 74% in 2021.6
- 48% of public companies strongly agree that training and education are essential components of a 10b5-1 provider’s offering.7
“Rule 10b5-1 trading plans are very nuanced and require deep subject matter expertise to structure,” Carrasquillo stressed. “In light of recent regulatory shifts, companies need advice on marrying their liquidity objectives and long-term financial planning with a compliant product.”
Education Remains Imperative
“To deliver on the advice executives want, it’s essential to provide them with access to education at the time and in the manner they prefer,” Winget noted. “Our research shows that targeted education is valuable, if not critical, to enhancing engagement among executives.”
When eligible participants fully understand how their benefits contribute to their personal financial wellness, engagement typically rises across the board. That’s especially the case for executives when educational programs are augmented with one-to-one support offered by Financial Advisors who can help executives consider their wealth holistically.
Armed with an understanding of these evolving trends, organizations can begin to enhance engagement by delivering the financial benefits, advisory support and education their executive teams increasingly seek.
For more insight into actionable strategies for engaging executives, watch the full virtual discussion.
