Share Plan Service Providers: A Global View

Celent estimates revenues at share plan services in the US and UK were US$1.5 billion and US$400 million respectively in 2014, and will expand to US$2.2 billion and US$700 million respectively in 2020.

The ecosystem of share plan services includes plan administrators, tax accounting, consultants, broker/transfer agents, law firms, and consultants. The primary types of share plans used by large listed companies are stock options and restricted stock plans. Sixty-six percent of major corporations use plan administrators to manage their share plans. The proportion of firms using external administrators has increased gradually, and share plan service vendors include plan administrators, software/outsourcing vendors, consultants, and insurers.

In the report Share Plan Service Providers: A Global View, Celent examines the market and current trends, and profiles some vendors.

“Celent recommends that vendors differentiate themselves, show global service ability, and set up consulting teams to enter the share plan market,” says Hua Zhang, an analyst with Celent’s Asian Financial Services practice and author of the report. “There are many share plan service providers in the market, and each vendor has their own special ability, such as software, consulting, or administration. Even in the consultant niche market, there are some differentiation strategies.”