Carver Edison, a New York City-based financial technology company which creates upward mobility solutions for employees of publicly traded companies, and Morgan Stanley at Work, a workplace financial solutions provider, announced today the successful implementation of an application programming interface (“API”). The integration optimizes the administration and management of Employee Stock Purchase Plans (ESPPs) that are enhanced with Carver Edison’s Cashless Participation®.
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“ESPPs are a powerful, shareholder-friendly compensation tool that can help employees build their net-worth and supplement their cash flow. Offering this type of benefit to employees is critical for employers looking to retain talent and navigate rising inflation.”
Amid historic global inflation and increased market volatility, it is critical that employees have access to their equity compensation, including ESPP shares. This new API provides Morgan Stanley at Work’s global corporate clients and equity participants with a streamlined equity administration process that includes automatic transfers of account and purchase data for same-day share settlement. Given the processing time is truncated, participants are able to receive their shares even faster and at greater scale than ever before. Backed by Carver Edison’s technology, clients will also be able to use the Cashless ESPP tool to offer financially inclusive stock ownership choices through their employees’ brokerage accounts.
“By enabling ESPP participation for the world’s workforce, we help individuals reach their financial goals amid market volatility. We’re thrilled to work with Morgan Stanley to execute on our shared vision of building inclusive wealth solutions,” said Aaron Shapiro, Founder and CEO of Carver Edison. “ESPPs are a powerful, shareholder-friendly compensation tool that can help employees build their net-worth and supplement their cash flow. Offering this type of benefit to employees is critical for employers looking to retain talent and navigate rising inflation.”
“We are thrilled to collaborate with Carver Edison to provide our clients and participants with cutting-edge technology that simplifies and streamlines administrating and managing their employee stock purchase plans,” said Scott Whatley, Managing Director and Global Head of Equity Solutions of Morgan Stanley at Work. “Given our significant role in the FinTech and benefits space, we continuously look to forge relationships with innovative companies like Carver Edison to raise the bar when it comes to workplace wealth, offering game-changing technologies that translate into practical and useful solutions for our clients and their plan participants.”
The widened availability of Carver Edison’s Cashless ESPP tool is also a way to provide Morgan Stanley at Work’s equity plan participants with the opportunity to acquire more discounted company stock without shrinking their paychecks. On average, employees using the Cashless ESPP own 50% to 150% more company stock without cost prohibitive payroll deductions, and companies providing this benefit unlock increased adjusted paid-in capital through bolstered plan participation. The program is sustainably funded through capital markets activities managed by Carver Edison.