Wealth strategy

Computershare South Africa is an ideal partner in helping companies navigate the intricate nuances of managing employee share plans

Employee share plans are no longer just tools for aligning workforce goals with corporate success – they represent a gateway to fostering financial literacy, promoting a culture of savings and creating grassroots investment opportunities. In SA, these plans hold the potential to address broader socio-economic challenges by encouraging personal wealth building and active financial participation among employees at all levels.

For many participants, employee share plans provide their first exposure to equity markets and financial management. Companies that pair these schemes with robust educational programmes and roadshows empower employees with knowledge about investing, saving and wealth creation. Financial literacy is not just an ancillary benefit; it is a cornerstone of long-term success for both employees and organisations.

Employee plans can also become a key component of talent acquisition strategies. Prospective candidates increasingly evaluate employers beyond salary. Holistic packages that include financial benefits, professional development opportunities, work-life balance, a sense of importance, and forward-thinking strategies aligned to ESG are now considered. An employee share plan helps to demonstrate the value an organisation places on its people.

Targeted schemes such as executive share plans and long-term incentive plans play a critical role in retaining and motivating top talent, and are generally used by companies to align executive rewards with their company strategy. Executive share schemes often tie to specific performance metrics such as profitability, revenue growth or ESG targets, further incentivising strategic leadership.

Long-term incentive plans are typically structured to vest over several years, ensuring alignment between executives’ interests and the company’s strategic objectives. Executive share schemes are designed to reward leadership excellence, foster accountability, and strengthen the link between decision-making and shareholder value.

Despite the benefits, perceived barriers such as regulatory complexities and the administrative burden of managing employee share plans can sometimes discourage companies from implementing them.

Corporate and tax regulations require meticulous attention and compliance, adding layers of complexity that often demand expert management.

To overcome these hurdles, many companies are turning to technology-driven solutions and expert partners to gather management insights, track performance and provide employees with information about their holdings. They are looking to someone they can trust, to get the certainty and advantage of expertise and technology.

With decades of experience in share schemes and long-term incentive plans, Computershare South Africa offers organisations a wealth of expertise and a deep understanding of the SA market and regulatory environment. It has managed some of the country’s largest retail schemes, serving thousands of participants across various sectors. It helps organisations strategically plan the design, establishment, implementation, administration and vesting within the pre-defined and unique rules of their scheme or plan. This includes regulatory compliance, shareholder communications and record keeping.

Given that many employees may not immediately recognise the long-term value of share plans, comprehensive training and frequent communication are essential to help them appreciate the benefits of treating equity as an investment rather than a short-term windfall. Organisations can bolster this understanding through omni-channel participant communication.

Computershare has a team of experts who can assist companies in setting up employee share plans

Computershare plays an active role in the participant experience and in their education to increase financial literacy and create a culture of saving and investment.

Computershare’s philosophy of ‘we believe that good governance comes from good design’ is reflected in its integration of expert people and innovative advanced technology, delivering optimal solutions for clients. Implementing an advanced technology solution can streamline the everyday activities related to employee share-plan management. Companies with hundreds or thousands of plan participants require scalable systems that automate time-consuming manual processes while seamlessly integrating with HR, payroll and accounting platforms.

Digital platforms offer more than operational efficiency – they enhance user experience. Customised participant portals allow employees to easily view their portfolios online, while tailored communications reinforce the organisation’s brand identity. Computershare South Africa’s multilingual contact centre provides support across SA’s official languages, further enhancing participant engagement.

Moreover, these plans help employees feel more connected to their organisations, fostering loyalty and a sense of belonging. By involving participants in the company’s success, employee share plans have been shown to improve employee morale and productivity. This alignment of interests can significantly enhance a company’s overall performance, creating a win-win scenario for both employers and their teams.

As the SA market becomes increasingly competitive, organisations that effectively use long-term incentive plans and executive share schemes will be better positioned to attract and retain high-calibre talent. Not only do they reward individual contributions, but they also reinforce a company’s reputation as a forward-thinking and equitable employer.

Beyond administrative support, Computershare’s technology offered also provides valuable functionality for corporate clients, including APIs and integration capabilities. For organisations considering implementing or enhancing their share schemes or incentive plans, the right partner makes all the difference. With deep expertise and innovative technology, Computershare South Africa offers solutions that deliver value at every level.

By partnering with Computershare South Africa, companies can benefit from expertise and experience, with access to a team of experienced professionals who understand the complexities of employee plan management; innovation, by leveraging advanced technology to streamline processes and improve efficiency; and strong governance and risk management practices, as implementing robust governance and risk management frameworks protects the interests of plan members.

Anyone considering implementing an employee share plan, long-term incentive plan or executive share scheme can contact Computershare to discuss their requirements. Computershare believes that these are powerful tools for organisations to engage and motivate their employees and leadership teams.

+27 (0)11 370 5000
[email protected]
www.computershare.com/za