Slow Board Approvals for Employee Equity Are Killing Morale

The Traditional Board Approval Process

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Traditionally, the process of granting employee equity involves several steps—from the initial proposal by HR or management teams to the final approval by the board. This can take anywhere from a few weeks to several months, significantly delaying the reward and recognition employees expect and deserve.

In fact, in a study by Executive Advisory, Inc., it was found that high impact boards spend an average of only 300 hours per year on board related tasks.  That's only 14% of the average working hours of a single company employee on a yearly basis.  And when you consider that approvals are only part of the duties of the board, and aren't carried out every time the board meets, it becomes clear that this process is far too slow.

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Challenges Faced by Companies and Employees

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For employees, delays in equity grants mean missed opportunities, especially in rapidly growing startups that have prerequisites, such as a cliff period, before vesting can even begin. As a result, these slow equity approval processes can hurt morale and reduce the attractiveness of compensation packages to potential hires.

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The Need for Real-Time Equity Management Systems

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In the midst of digital transformation across corporate sectors, the outdated practices in equity management hinder companies' ability to make fast, strategic decisions about employee compensation. This not only impacts employee morale, as mentioned, but also the overall agility of the company in navigating corporate operations.

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Transforming Equity Management

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A real-time equity management system could streamline this cumbersome process, allowing companies to gain board approval and issue equity almost instantly. This shift could significantly enhance how companies use equity as a tool for motivation and retention.

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Current Solutions For Smoother Board Approvals

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Easop.com emerges as a groundbreaking solution, offering a platform that significantly speeds up the board approval process for granting employee equity. By inviting the board to the Easop platform, board members can easily view, review, and approve equity.

The board doesn't have to be in the same place at the same time anymore.  The board can approve each grant at their convenience and get equity to your team faster.

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The Future of Equity Management: Speed and Efficiency

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The slow board approval process for employee equity is a relic of the past. With solutions like Easop.com, companies can now enter an era where equity management is marked by speed, efficiency, and timeliness—qualities essential for thriving in today's dynamic business environment.

For businesses ready to revolutionize their equity approval process, Easop.com offers the perfect starting point. By prioritizing speed and efficiency, companies can leverage equity more effectively as a tool for attracting and retaining talent. Experience the difference today—because when it comes to employee satisfaction, every moment counts.

Your journey to better, clearer international equity practices starts here

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