According to the data, yes. When setting aside a pool for equity, the more people employed by a company correspond negatively to the amount of equity set aside.
Most of the organizations surveyed reported having either 1-5 employees or more than twenty, but with organizations of all sizes reporting, we’re able to see patterns. And the breakdown between equity sharing pools was enlightening.
• Organizations most generous with their sharing of equity are those with fewer than 20 employees. Those with 11-20 employees appear more likely to set aside 25% in their pool.
• The smallest organizations with ten or fewer employees were equally likely to set aside 5% or 10%.
• Falling in the middle were organizations with 21+ employees who were most likely to commit 10% of their equity to their stock-benefit pool.
All that said, when you further correlate those numbers with the number of employees with whom organizations plan to include in their plan, those sharing the most total equity are those organizations splitting it between 2-5 employees.
So, what is the overall view of sharing equity between multiple employees? Organizations are not increasing the size of the pool set aside for equity sharing as they grow larger. The smaller companies see more value in this benefit than their larger competitors.
These findings support the value of equity programs to smaller organizations, as they compete for new talent and strive to keep their most valuable employees in place.
