For employees at private companies, equity compensation is a deferred promise that the company’s success will eventually translate into personal financial gain. According to Morgan Stanley at Work’s most recent State of the Workplace Financial Benefits Study, 67% of employees and 88% of HR leaders at private companies say the prospect of a future liquidity event or IPO is important to them.
However, with the IPO market still navigating uncertain economic conditions, many of those employees are in a prolonged holding pattern because they are invested in an outcome with unclear timing. PwC’s 2026 market outlook suggests that investors remain selective, and companies still need the scale, profitability and operating discipline to come to market on favorable terms. For employees holding equity, that keeps the promise of a future payout intact while leaving the timing of that payoff unresolved.
One in five HR leaders says they have heard employees express worry or concern about not fully knowing how to utilize equity compensation or employee stock purchase plans. That is a significant admission, especially considering research consistently shows that employees are often hesitant to raise financial concerns at work. If 20% of HR leaders report hearing these concerns directly, the true proportion of employees experiencing them is likely even higher.
When a liquidity event does arrive, whether during an IPO, an acquisition or a secondary offering, employees must face lasting financial consequences and the transition from anticipation to action can be disorienting.
HR leaders at private companies face a time-sensitive job under these circumstances, because employees may not yet know what they don’t know. The financial literacy infrastructure needs to be in place before the event arrives, yet the study suggests many employees aren’t prepared. Only around one-third of employees say helping maximize equity compensation or stock purchase plans is essential to meeting their financial goals, compared to about half of HR leaders who say the same.
How HR can help with equity education
The broader findings in the study reinforce why this matters beyond equity dollars. Eighty-four percent of employees believe employers should assist them with financial issues, yet 34% have never considered reaching out to their employer for help.
“As awareness and interest in equity plans grow, it’s crucial that we continue to enhance education, support and access so companies can leverage this tool to boost both employee satisfaction and organizational performance,” wrote Craig Rubino, head of corporate relationship management and engagement at Morgan Stanley at Work.
At private companies, where equity is often a central pillar of the compensation story, that could carry extra risk. An employee who doesn’t understand their equity compensation is also less likely to feel the full value of it. This could undermine retention, engagement and the broader promise that private company equity is supposed to represent.
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