Equity compensation can help organizations accomplish two goals at once: It not only incentivizes executives to drive long-term business performance but also contributes to a sense of ownership that can enhance employee retention, engagement, and wider company culture. However, the complexity inherent in equity plans can often mean that even experienced leaders may struggle to fully maximize their equity compensation without guidance and support.
Despite their financial sophistication, many executives lack a formal personal financial plan1—leaving them less confident and at risk of missing opportunities to better manage their equity awards or achieve personal financial goals. HR and benefits leaders are uniquely positioned to help close this planning gap by embedding tools, targeted guidance, and Financial Advisor access into equity compensation programs. This can help executives make more informed decisions, help boost financial confidence, and ultimately help support both individual and organizational goals.
The Planning Gap: A Hidden Risk in Executive Benefits
Equity compensation, which often includes stock options, restricted stock units, or other equity-based awards, is a powerful tool for aligning the interests of key talent with those of the company. Yet our recent research reveals a surprising disconnect: While executives are often seen as financially savvy, 44% of those participating in their company’s equity compensation plans say they do not have a formal personal financial plan.1
Why does this matter? Our data shows a direct link between planning and confidence: 73% of executives with a formal financial plan feel confident in achieving their financial goals, compared to just 41% of those without one.1 And even financially savvy executives say they want more guidance—particularly on topics covering investment and wealth management, estate planning and wealth transfer, tax optimization strategies and navigating equity compensation and executive benefits.1
Why Confidence Matters: Linking Planning to Outcomes
Financial confidence is more than a feeling; it can help drive better decisions and, in turn, outcomes. Executives who are confident in their financial trajectory may be more likely to make informed decisions about their equity grants, vesting, and exercises. For example, Morgan Stanley at Work’s State of the Workplace research shows that equity recipients who understand and engage with their equity benefits are more likely to stay with their employer and make more informed financial decisions.2
For HR and benefits leaders, this means that closing the planning gap isn’t just about offering a perk—it’s about supporting business goals, such as retention and engagement.
HR’s Toolkit: Embedding Planning into Equity Programs
How can HR and benefits teams help move the needle to support their executives in planning with equity compensation? First, know that you’re on the right track: 98% of executives are interested in additional, customized guidance for both equity compensation and personal wealth management.1 Second, our research points to several actionable strategies:
- On-Platform Planning Modules: Integrate financial planning tools directly into the equity compensation platform, making it easy for participants to model scenarios, set goals, and track progress.
- Targeted Nudges at Key Moments: Use data-driven prompts at critical equity events—such as vesting, exercise, or blackout periods—to encourage participants to review or update their plans.
- Financial Advisor Access: Offer access to dedicated Financial Advisors who can provide personalized guidance, validate participants’ strategies, and help them navigate complex decisions from a more comprehensive financial perspective.
- KPIs for Success: Track plan adoption rates, participant confidence (via surveys), and the quality of equity-related decisions as key performance indicators.
When individuals receive clear insights that confirm whether they are on track to meet their goals, along with actionable recommendations as needed, it can greatly enhance their confidence in the equity planning process. A supportive, comprehensive approach can be a decisive factor in encouraging engagement and trust in HR-led equity programs. Work with your providers to find the strategy and resources that are the right fit for your organization.
Measuring Impact: From Planning to Performance
To achieve meaningful results, consider tracking how many equity participants create formal financial plans and monitor any changes over time to gauge program effectiveness. Assess confidence levels before and after.
Evaluate the accuracy and timing of equity-related decisions—grants, vesting, and exercises—to measure the impact of education and planning resources. Analyze retention rates to understand participant engagement and satisfaction. These metrics can help show program value and guide continuous improvements for better support of organizational goals and participant needs.
The financial planning gap among executives creates an opportunity for equity programs to add value and strengthen engagement. In a competitive talent market, closing this gap can help boost financial confidence, drive stronger personal financial outcomes, and position your organizations as an employer of choice.
- Morgan Stanley at Work. Connecting the Dots for Executives: Insights on the Intersection of Work and Wealth. Nov. 2025.
- Morgan Stanley at Work. The State of the Workplace 2025 Financial Benefits Study. May 2025.
Employee stock plan solutions are offered by E*TRADE Financial Corporate Services, Inc., Solium Capital LLC, Solium Plan Managers LLC and Morgan Stanley Smith Barney LLC (“MSSB”), which are part of Morgan Stanley at Work.
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