Morgan Stanley at Work today released the results from its fourth annual State of the Workplace Financial Benefits Study, revealing that equity compensation is increasingly popular among employees and HR leaders at both public and private companies. The study indicates that employers view equity as a crucial factor for employee engagement and retention, though there are opportunities to enhance employees' understanding of the financial benefits available through equity ownership.

Key findings from the study include:

- Equity compensation is growing in popularity: 76% of HR leaders report their companies offer some form of equity compensation benefits, an increase from previous years.

- Equity compensation's role in employee engagement: 95% of HR leaders believe it is the most effective way to keep employees motivated, with 80% of employees agreeing.

- Liquidity focus at private companies: 62% of employees at private firms consider future liquidity events or IPOs important. Among HR leaders, 86% emphasize the importance of considering liquidity events within the next 12-24 months.

- Divergent views on long-term value: Employees' perception of equity compensation as a long-term investment has declined, while HR leaders continue to see its merits for retirement goals.

- Gaps in awareness and education: Only 38% of employees are aware their company offers these benefits, and less than half rate their company's education programs as very effective.

"The data shows that equity has become a key driver of retention, engagement, and value across the entire organization—and one of the most powerful tools to sync employees with the success of their companies," said Kate Winget, Chief Revenue Officer of Morgan Stanley at Work. "Equity plan engagement can have a direct impact on employee satisfaction and goodwill."

Additional details are available in Morgan Stanley at Work’s State of the Workplace Study. Future publications will cover financial benefits and retirement benefits.

The survey was conducted by Wakefield Research between February 5 and February 12, 2024, involving 1,000 U.S.-employed adults and 600 HR leaders.

Morgan Stanley at Work provides workplace financial benefits including Equity, Retirement, Deferred Compensation, Executive Services, Saving and Giving solutions. Morgan Stanley Wealth Management offers various financial services including brokerage and investment advisory services. For more information about Morgan Stanley’s services visit www.morganstanley.com.

For media inquiries:

Jeanne Joe Perrone - Jeanne.Perrone@morganstanley.com

Lindsey Madnick - Lindsey.Madnick@morganstanley.com

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