“We don’t know what we don’t know” – Someone who needs help
This is the start of half of the conversations that we have with people seeking assistance with their stock or general compensation plans. The other quote that isn’t known as well…
“We do know what you don’t know” – Equity Point
Equity Point lives and breathes in these spaces. If you didn’t read my last blog entry about Trusting Your Guidance, then you should as it covers similar territory at this. We have all the right experts to get you what you need.
We’ve…
…met the teams
…discovered the strengths and the weaknesses
…seen the demos
…interviewed the clients
…of each provider that we work with.
In being involved with everyone, we also get a small piece of each of their headaches. When they lose a deal, we lose a deal. When we all work hard to deliver a solution to a client and they end up pivoting to something else, it’s a bummer for all of us. Ultimately, we want to match the right solution with the right client and the most satisfied clients are the ones who have a discussion with us with an open mind.
Deciding your solution based on “what you used at a previous company” or “what you are familiar with” typically isn’t the best solution to a problem.
The Honda Comparison:
Would you buy a Honda Accord for your construction company because you love how they drive and have driven one since you were 16? No. You would not.
We all know what a Honda Accord is and that it doesn’t make sense for a construction company. Managing an equity compensation plan isn’t quite as obvious or familiar to people; some mistakes that we see made by people who don’t end up going with a proper solution are as obvious (to Equity Point) as the Honda/construction company metaphor. Every situation is unique and deserves to be treated that way, and vendors and their offerings (and, of course, their people) constantly change.
Equity Point is here to ensure that you don’t buy a Honda Accord for your construction company…
The corporate controller might push to buy an automatic Honda, but they have never driven a manual truck before so they would prefer to keep it simple with a sedan…even if it doesn’t make sense.
Your CFO, general counsel, or HR director might push to buy a Honda because they started driving one when they were 16 (at their first company). Now every time their car breaks down (they change companies) they run off to their trusty dealership to buy yet another Honda sedan, despite the fact that they have a family now (different type of company and stock plan) and might be better suited towards a Chevy Suburban.
People are creatures of habit. We fear change and love to default to the comfortable and familiar…often to our detriment.
The reality:
The truth is that many of these cars are the same on the surface. Ultimately, they will all get you from point A to point B, but riding across country in the back of a pickup is a lot less comfortable than a van. You see, it’s the little details that come into play after your purchase that change things.
- Did you actually consider the total cost and interest or did you get wrapped up in the “low monthly payment”?
- Did you read the fine print on the warranty?
- Did you consider the cost of repair, maintenance, or insurance premiums on that exotic sexy BMW?
- Did you think about whether you REALLY actually need a gas guzzling truck/SUV or do you just like to be “up high on the road”?
- Did you read reviews of the company/dealership customer service online?
Don’t make these mistakes. Choosing an outsourced provider, hiring a new stock plan manager, or choosing a new system is like a cross between a car purchase and marriage, both can be very ugly if you aren’t strategic and thorough in your decision-making process…
Our Take:
Equity Point is here to assist in not only providing further high level guidance (like what is outlined in this article) but open the doors to the different kind of specialized vendors in this space. We have partnerships with multiple outsourced providers, staffing and consulting agencies, software providers, and a network of independents to leverage and ensure you find the right vendor at the most competitive price. Talk to us and we can recommend specific options, gather quotes, provide consultants or candidates for placement/temp-perm, and make sure you are getting what you need.
Masters Of The Stock Plan Universe
Our blog and company mission is to simplify and consolidate a rather complex and diversified world; the world of stock plan administration.
Our blog and services…
- are free to all…
- are based on extensive industry experience…
- are for your benefit and knowledge…
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