Plenty of people get given shares or options alongside their salary, but did you know that twice as many men as women enjoy this benefit?
That’s a shocking statistic in this day and age, so let’s explore what the underlying issue is and what we can do to change things.
Mind the gap
So, what’s with the disparity?
There are a couple of theories bouncing around, most of which have their roots in (what should be) history.
One of the leading lines of thought is that hard-to-shift biases have resulted in fewer women occupying leadership positions within organisations. And those in leadership positions are more likely to receive shares or options.
So, less women in leadership = less women receiving shares/options.
Why we need to care about shares
Shares are one of the most powerful benefits we can receive at work.
Share schemes allow you to create future wealth for yourself. You can genuinely accrue life-changing sums of money from being a stakeholder in a business if that business does well
In fact, a customer of ours recently told us that his whole team had recently paid off their mortgages on the back of their company share scheme.
For a lot of companies, this big ‘pay day’ comes on the back of what’s known as an ‘exit event’ – such as the business being sold or floated on the stock exchange. At that point, everybody gets to cash in their shares.
However, some companies also pay dividends (regular payments) to their shareholders, typically annually.
When you think about all of the above, it’s easy to see how much could potentially be missed out on if you don’t ask for shares.
How to Negotiate Shares
So now we come to the thorny issue of how to change things. One way is to raise awareness that shares are even possible —hence this blog post!
If you’ve been offered a new job or are about to embark on a job hunt, think about how you’d ask for shares ahead of time.
It might help to read this guide to the art of negotiation.
Here are some helpful tips to guide you through the process:
Define Your Objectives: Clearly establish your goals for the negotiation process. Determine what percentage of shares you are aiming for or what specific terms you want to negotiate (e.g., voting rights, board representation). Having a clear vision will help guide your strategy throughout the negotiation.
Build Rapport: Establishing trust and rapport is essential in any negotiation scenario. Take time to understand the other party’s perspective and interests while also clearly articulating your own needs and expectations.
Highlight Value Proposition: When negotiating shares, emphasise your unique value proposition to the company. Don’t be afraid to blow your own trumpet here!
Be Flexible: Negotiations often involve give-and-take scenarios where both parties need to compromise on certain aspects of the deal. Be open-minded and willing to explore alternative solutions that can satisfy both sides’ objectives while maintaining fairness.
Document Agreements: Once negotiations have reached a mutually satisfactory outcome, it is crucial to document the agreed-upon terms in a legally binding contract. Ensure that all parties involved thoroughly review and understand the agreement before signing.
It’s easy for them, and it benefits their company too
With platforms like Vestd, it’s actually pretty easy for companies to share their equity these days, and it’s tax-efficient for them, too.
Plus, sharing success with team members is proven to unleash a phenomenon called ‘The Ownership Effect’, which basically lights a fire under productivity, growth and collaboration. It’s also proven to enhance loyalty massively, reducing re-recruitment costs for the company in the long run.
So, remember that you’re not asking for the earth. You’re actually helping them to create a better, more stable and more tax-efficient business.
And they can do it at a click of a button.
Conclusion
The bottom line here is that women deserve the same opportunities as men. Companies and individuals need to make greater efforts to close the gaps that still stubbornly remain open.
Promoting gender equality not only benefits individuals but also contributes to stronger economies.
It is time for corporations worldwide to recognise this issue as a priority and take proactive steps towards closing the gap once and for all.
But in the meantime, don’t be afraid to ask for shares next time you negotiate your salary or ask for a raise. It’ll help you, and it’ll help to create a better working environment for everybody.
Born in Bradford, Vestd’s founder and CEO, Ifty Nasir, achieved just about everything there is to achieve in the energy world before bowing out to start his own passion project, Vestd.
Vestd is now the UK’s most powerful share scheme platform and is used by thousands of business leaders to easily and safely manage their equity.