Denver-based recordkeeper Empower is entering the market for equity compensation services with today’s announcement that it has acquired Plan Management Corporation (PMC), the creator of OptionTrax, a leading digital equity plan administration platform and service provider.
The OptionTrax platform is currently used by more than 300 employers with approximately $62 billion in equity compensation plan value.
“Empower is acquiring OptionTrax to take the next step forward in the evolution of an integrated digital compensation solution for employers who want to make equity a key element of how they reward their associates,” said Edmund F. Murphy III, President and CEO of Empower. “The acquisition of OptionTrax is designed to accelerate the creation of a best-of-breed platform ultimately aimed at helping public or privately held employers of all sizes access equity compensation services.”
According to Morgan Stanley at Work’s State of the Workplace 2024 Financial Benefits Study, 95% of HR leaders and 80% of workers said adding equity compensation to the mix is the most effective way to further drive employee motivation and engagement.
Under the agreement, Empower has wholly acquired PMC, headquartered in West Conshohocken, Pennsylvania, including its technology, proprietary product and service offerings, intellectual property, licenses, and contracts. After the close of the transaction, the OptionTrax platform will be branded as “OptionTrax by Empower.” Financial terms of the transaction were not disclosed.
The combination will bring together Empower’s retirement and wealth management services and integrated financial tools with OptionTrax’s growing, digitally oriented equity compensation platform and administration services. The OptionTrax equity plan platform will be integrated with Empower’s digital experience, which provides individuals a complete view of their financial picture—including their personal assets and liabilities—and the ability to manage their progress toward financial goals.
“There is a considerable untapped need in the market to help a diverse array of employers deliver equity as a means of compensating their employees.”
PMC Founder Jonathan Miller
“There is a considerable untapped need in the market to help a diverse array of employers deliver equity as a means of compensating their employees,” said Jonathan Miller, founder of PMC. “By adding our technology and capabilities to Empower’s scale and distribution reach, we will be able to deliver the innovation of OptionTrax to more employers and help drive even greater levels of financial confidence to their employees.”
Along with the acquisition of PMC, Empower is announcing the establishment of Empower Stock Plan Services, LLC, which will be led by Empower Executive Vice President for Enterprise Solutions Dave Gray.
“Our 401(k) clients have asked us to help them with solutions beyond their retirement plans, including equity compensation administration,” said Gray. “This continues the evolution of our integrated, state-of-the-art workplace benefits and wealth management solution platform. The employers we serve will be able to offer their employees a more powerful compensation benefit that is highly valuable in a competitive labor market.”
OptionTrax specializes in equity compensation management, providing comprehensive solutions for administering and managing stock options, restricted stock units, and other forms of equity compensation. Founded with a focus on simplifying the complexities of equity compensation, OptionTrax offers tools that help companies manage their equity compensation structure, ensure compliance with regulatory requirements, and streamline reporting processes.
The OptionTrax platform caters to both private and public companies, offering features like real-time tracking of equity plans, automated workflows, and robust reporting capabilities.
OptionTrax’s services include plan design, grant management, financial reporting, vesting schedules, and tax calculations, all within a secure and user-friendly environment. The company also emphasizes customer support, offering personalized service and expert guidance to help clients navigate the equity compensation landscape.
Empower, formed in 2014, administers $1.6 trillion in assets on behalf of more than 18 million investors through its retirement services and wealth management units. Empower serves all segments of the defined contribution plan market and provides services to plans of all sizes, including private-label recordkeeping clients.
After the close of the transaction, the OptionTrax platform will be branded as “OptionTrax by Empower” and will continue to provide its award-winning equity compensation services as it is integrated into the Empower platform.
Eversheds Sutherland served as legal counsel to Empower. Troutman Pepper Hamilton Sanders LLP served as legal counsel to PMC.
SEE ALSO:
• Another Quarter of Record Earnings at Empower
• Interest in Equity Compensation Plans Increasing
• Empower Reports New Highs in AUA, Retirement Plan Participants
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
