Early on in my career around equity comp, I noticed that stock plan people really like to “DIY”. Time and again, I would talk to a prospect about (what seemed to me, at least) very complex and challenging issues that we might help them solve, only to have them end up figuring out how to get through it themselves. If it was just a matter of not having the bandwidth for a big project, it was far easier for them to agree to get the help they needed. But where they didn’t have the “answer” to something they were facing… asking (or should I say, paying) for help did not happen a lot. And, in the end, they often did a great job figuring it out.
There are certain types of projects, however, that really demand experience. Equity accounting, for example, is definitely an area where there are so many ways to go wrong, and getting expert guidance when new issues (or rules) arise is definitely recommended. But most stock plan people are glad to get that type of help. People say, “Accounting, not my bag”, and are glad to leverage real expertise. But sometimes the softer and easier-sounding projects are really where nothing beats experience. Here are a few we see that don’t fit well into the DIY mold (but too many people think they do):
Stock Plan Vendor Search – Experience pays off big where it comes to choosing a new stock plan vendor. A good consultant will not only bring a real, tested methodology to the RFI/RFP review process, but also tease out of you and your team priorities and “must-haves” for a new system that you might never have considered. They know that there is no “best system”, but rather, the best system for YOU, and will be very comfortable walking you through the steps of figuring that out. And where it comes to the later phases of the selection process, you really want someone on your side who is going to see through the demo sales talk to determine if what you are seeing is actually going to deliver what you need. Finally — and this is often overlooked, but invaluable — the experience that comes with having done multiple vendor searches also means that they have seen multiple vendor contracts, and can leverage that knowledge to help you get the best contract terms possible (and that alone may even be worth the cost of the consultant).
Equity Compensation Communications – I did already tell you that Stock Plan Communications is the Next Big Thing, but if you are not already a communications maestro, you have to start somewhere. Right now, not enough equity plan professionals do a really good job communicating/educating around their company’s stock plans. But asking for budget around communications is REALLY something a lot of people don’t like to do. It just seems like something they can/should figure out. And, there is the internet…isn’t this why the internet was invented? “There must be someone who posted something I can copy…there must be some idea I can take”, they say to themselves. Sure. Like a dwarf standing in line, I smell a but. Yeah, there is a but…you have a unique program, unique population, unique culture, and little differences are going to make all the difference in the world to how effective your communications are. Getting expert help on questions of messaging, delivery methods, frequency, and other variables, and then putting it all together is going to take your program to the next level.
Automation – Ok, not something a lot of people actually try to do themselves.
It is actually something they often just ignore, choosing a different DIY path: one filled with tedious and error-prone manual processes. They know there might be a better way, but feel bad about asking for it. After all, the person before them did it this way, and the person before them…”what are you, lazy?”. Integrating payroll/stock plan or consolidating multiple payrolls, sending out/posting employee information, data analysis for things like international tax compliance. These are just a few of the areas we have talked to our clients about automating. But really, any time there is a complicated process that seems to require a few too many steps, there is probably a way to automate it and make it easier. And a real expert can help you see where those opportunities lie. You just have to ask.
Need help with any of the above? You have come to the right place. Contact us today.