#United States #Petaluma #Charles Schwab #Equity Methods #Group Five

Overview of Group Five's 2025 Benchmarking Study

Group Five has released its annual benchmarking study focusing on stock plan administration and financial reporting services, revealing a significant increase in industry-wide client loyalty and satisfaction. For the first time, the study shows that the Net Promoter Score (NPS) for stock plan administration surged 15 points from the previous year, reaching an impressive score of 45. Moreover, overall satisfaction levels rose by three points, reflecting a favorable rating of 82% among clients.

In terms of financial reporting, client loyalty also witnessed a positive trend, increasing six points to an NPS of 56, with overall satisfaction climbing by two points to a commendable 88%.

Key Findings

The study showcased prominent leaders in the equity plan administration sector. Charles Schwab, for the second consecutive year, received the highest ranks in overall satisfaction for stock plan services at a striking 92% favorable score. Fidelity topped the charts in client loyalty with an NPS of 67. Andrew Salesky, Managing Director at Schwab, attributed the positive feedback to an ongoing commitment to enhance technology alongside a strong service culture.

"Our continuous focus on advancing our technology while retaining our service culture is evident in our scores," said Salesky. "We are actively enhancing both sponsor and participant capabilities to leverage our complete range of services."

On the other hand, Equity Methods excelled in loyalty and satisfaction ratings for financial reporting services, achieving an astonishing NPS of 93 and a total satisfaction rating of 100%. Takis Makridis, President and CEO of Equity Methods, expressed gratitude for the trust demonstrated by their clientele, referencing the increasing complexity of clients' financial reporting needs.

"The Equity Methods team is honored to receive top ratings for the twelfth consecutive year," Makridis stated. He underscored their commitment to enhancing coordination across different departments, which is crucial as clients' needs grow in complexity across various reporting requirements.

The Role of Technology

The findings also highlighted the critical role of technology in managing equity compensation plans, especially considering the complexities involved. As noted by Jeff Sunday, CEO of Group Five, the most successful service providers are those who offer advanced plan administration technologies with knowledgeable personnel who understand the uniqueness of their clients’ challenges.

This study now in its 26th year, is based on the responses from 359 U.S. public companies, making it the only independent platform for plan sponsors to confidentially provide feedback to service providers regarding their priorities.

Conclusion

Group Five, established in 1990, is renowned for its business-to-business loyalty and satisfaction research, particularly in the realms of equity compensation as well as shareholder services. The firm has positioned itself as a leader in this niche sector, continually adapting to the evolving needs of its clients while promoting effective communication between service providers and plan sponsors.

As these ratings and findings suggest, there's a clear trend towards advancing technology in service delivery, which is essential as client needs continue to grow and evolve in complexity and global reach. Moving forward, the industry must adapt to these trends to ensure satisfaction and loyalty among clients continues to rise.