Problem

The biopharmaceutical industry requires constant innovation, rapid scientific advancements and a highly specialized workforce.  In such a highly competitive industry, attracting, retaining, and motivating top-tier talent is critical to long term success. Companies in this industry often look to offer employees top-tier total rewards packages.

Denali has historically offered an Employee Stock Purchase Plan (ESPP) to its employees. Although the plan has a generous design, many employees chose not to participate in the plan because they could not afford the after-tax payroll deductions given other competing financial priorities. Denali knew the ESPP had untapped potential and was in need of a solution that could take the plan to the next level.

Solution

To take their ESPP to the next level, Denali introduced Cashless Participation.  This new feature boosted the attractiveness of the ESPP by offering employees a way to increase their purchasing power under the plan while increasing stock ownership opportunities.  Cashless Participation, combined with their 12-month offering periods, lookback, and reset, created an exceptionally attractive plan for their employees.

Alongside adding Cashless Participation, the Denali team worked with Carver Edison to educate employees, while Carver Edison launched a custom plan website equipped with helpful employee tools and resources.  Since adding Cashless, ESPP participation has meaningfully increased in each enrollment period, with employees embracing and appreciating the new ESPP.

Results

After adding Cashless Participation to their ESPP, Denali experienced a surge in employee engagement. They’ve seen a 30% increase in overall ESPP participation since upgrading up the plan.

Not only has participation increased, but employees enrolled in Cashless Participation have already seen significant financial benefits after just one purchase.  Employees using Cashless Participation earned 7.6x more profit for every dollar they contributed compared to Traditional ESPP enrollees, and took home 89.7%more stock than they could otherwise afford.

The employees weren’t the only ones to benefit from the new plan.  With increased enrollment numbers and the benefit of added contributions from Cashless Participation, the ESPP has grown into a notable source of cash for the company, in addition to a best-in-class benefit that helps employee attraction and retention.

• 30% increase in ESPP enrollment post-Cashless
• 7.6x more profit per$1 invested for Cashless Enrollees
• 89.7% increase in stock owned for Cashless Enrollees

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Denali Therapeutics' introduction of Cashless Participation as part of its ESPP has resulted in a significant increase to employee engagement. This strategic shift has  also transformed the ESPP into a valuable capital source for the company.  This case highlights the pivotal role of innovation when trying to enhance employee benefits to attract and retain talent in a competitive industry like biopharmaceuticals.

Would you like more information about Cashless Participation?

Email us at sales@careveredison.com

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