The NASPP Blog

This time of the year always puts me in a state of reflection, thinking about what was accomplished and looking forward to next year. Contemplating next year means setting goals and objectives, both professionally and personally. Have you completed your 2012 planning?

I’m always in favor making things as fun as possible. Setting professional goals and objectives doesn’t have to be a chore! For this week’s blog, I offer three ways to spice up your stock programs in 2012.

1, 2, 3 Ideas

1. Work the Concept of “Perceived Value” into your Stock Plan Communication Strategy. One thing I learned from the session on Maximizing the Perceived Value of Equity Compensation at this year’s Annual Conference, is that the act of giving an employee a stock option is not what motivates them. What motivates the employee is their own perception of what the grant is worth. If the value of that stock option goes up and there’s gain, the employee then feels grateful to the company and works harder. This is called reciprocal behavior, and is a key to how recognizing the role of perceived value can help achieve the intended value proposition. To better align with this concept, companies need to lessen efforts focused on trying to “explain” the value to the employee, and focus on strategies that address the employee’s perception that “it’s worth what I think it’s worth”. Key drivers in achieving plan effectiveness are employee perceptions, behaviors and culture.

2. Bridge the Generation Gap. Most of today’s workforce populations are diverse. Not just culturally and geographically, but age-wise as well. It’s been said before, but I’ll say it again: there is no one-stop method to communications that is guaranteed to meet your employee population’s needs. Using multiple mediums targeted to your company’s various demographics is a must. One generation may be starting to embrace email, while others (think Generation Y) view email as a tool of yesterday! Email blasts alone to your stock plan participants are likely not going to cut it in 2012 and beyond. Start thinking about adding new modes of communication, such as text messaging, social media, and a focus on short, concise messages.

3. Implement a New Technology. We may not be in a position to create an iPhone or Android app for stock plan management (now that would be cool!), but there are many other ways to demonstrate that we’re hip and cutting edge. One idea would be to find a technology to implement in 2012. A great way to generate ideas in this area would be to talk with your IT group to see what technologies they’re implementing in the coming months; there may be an opportunity for you to tap in to something already on the road map. One idea I recently heard about was a company that is exploring implementing a secret Facebook group for their ESPP participants. Employees could receive Facebook updates and information real-time, accessible via multiple technologies (computer, phone, etc.). Competitive concerns were alleviated by making the group secret, such that no-one else could view it or have access.

I’m sure there are many other interesting ways to enhance stock programs in the coming year. Take our poll below to see what others are contemplating for 2012!

On Another Note: A Follow Up
Last month I blogged about the question of whether or not insider trading should be legal. In mid-November, CBS aired a segment on the show 60 Minutes about stock trades made by congressmen/women using inside information. I was surprised to learn that their trades were not in violation of any laws. If you’re interested, view the story here.

– Jennifer