Our Take
The equity vesting insight is sharp, but no data on how many companies have actually redesigned their plans beyond adding backup childcare.
Why it matters
With 74% of mothers working (company-reported), benefits leaders need specific fixes beyond feel-good flexibility policies. The wealth gap compounds when equity plans favor uninterrupted careers.
Do this week
Benefits leaders: audit your equity vesting schedules this month to identify caregiver penalties before your next plan design review.
Equity plans create unintended caregiver penalties
Kate Winget, Chief Revenue Officer at Morgan Stanley at Work, identified a specific mechanism behind the caregiver wealth gap: equity vesting schedules that penalize career interruptions. With 74% of women with children working (company-reported), the intersection between benefits design and long-term wealth building has become a structural issue.
Carta research shows women remain underrepresented in executive roles where equity grants are typically larger (per company analysis). But the problem extends beyond grant size to plan mechanics. Vesting schedules, eligibility rules, and contribution matching can force caregivers to choose between family needs and financial participation.
The issue compounds for sandwich generation employees managing both childcare and eldercare responsibilities simultaneously.
Benefits complexity masks real financial impact
The analysis connects day-to-day flexibility requests to long-term wealth outcomes. When working parents step away for reproductive care, parental leave, or family needs, the career interruptions affect both advancement opportunities and financial benefits accumulation.
Complex benefits structures make the problem worse. Employees struggle to understand how to use available support, while unclear guidance leaves managers without tools to normalize benefit usage across teams.
The financial education gap is particularly acute for sandwich generation employees, who need specific guidance on catch-up contributions and managing savings gaps during high-caregiving periods.
Three specific fixes for benefits leaders
Winget recommends pressure-testing all benefits through a caregiver lens, starting with equity and retirement plan design. Vesting schedules, eligibility requirements, and contribution matching should account for typical career interruption patterns.
Financial wellness education needs caregiver-specific modules covering savings gap management, catch-up contributions, and spousal coverage optimization. The education should integrate with existing benefits rather than operating as standalone programming.
Manager enablement requires simple, specific guidance to normalize flexibility and benefit usage. The goal is creating psychological safety so employees request support without fearing professional consequences.
Small additions can have outsized impact: flexible work arrangements, backup childcare resources, tutoring support, and dependent care FSAs address immediate pain points while supporting long-term retention and engagement.