Singapore-based digital wealth manager Endowus has announced a partnership with an equity solution provider to support employees and minority shareholders in managing their ownership in the company.
Endowus is strengthening an existing relationship with equity management solution provider Carta with a strategic partnership, according to a statement.
The tie-up seeks to improve the shareholder experience of Endowus employees and other minority shareholders. This includes easy access and management of employee stock ownership plan (ESOP) shares, including the amount held, vested as well as exercisable and future options. The two firms also looking to provide more regular secondary transactions for liquidity and access.
Company Culture
According to Endowus, the majority of the firm is owned through employees' direct investments or stock ownership programs. And this is tied closely with compensation for staff as it «plays a pivotal role in fostering employee ownership and talent retention».
«Opting for stock-based compensation rather than cash compensation is intimately tied to employees’ conviction in Endowus’ winning fee-only business model, and the growth trajectory of the company,» the digital wealth manager said in the statement.
IPO Downturn
Part of the motivation for obtaining ownership over cash is the promise of higher gains from selling the stake at a later point. But Carta’s APAC managing director Bhavik Vashi said he observed growing concerns about the prospects in light of a recent downturn in the region's public markets.
«In Asia Pacific, we have historically seen fewer IPOs which has led to employees questioning the value of ESOP. In turn, this has made it more difficult for local startup founders to attract top talent,» he explained. «Our work with Endowus is a significant step towards unlocking liquidity regionally and hopefully marks the start of a paradigm shift that can further benefit the local startup ecosystem.»
«We understand that an employee’s growth journey with us will evolve and priorities in life will change. [W]e hope to empower our employees to understand how stock-linked compensation can impact their long-term wealth goals, while simultaneously nurturing a collective sense of responsibility and ownership in the company’s future,» added Samuel Rhee, co-founder and chairman of Endowus.
