Julia Chirkova
A significant majority of equity management teams are expressing profound concern about their current technological infrastructure’s ability to accommodate future organizational growth, according to Certent’s newly released 2026 Equity Management Outlook. The report, which surveyed professionals directly responsible for managing equity within their companies, found that a striking 78% are either “very” or “extremely concerned” that their existing systems will not scale effectively as their organizations expand. This widespread apprehension underscores a critical disconnect between the evolving strategic importance of equity management and the operational tools available to support it.
The findings highlight a paradoxical situation: while 58% of equity management professionals still perceive their role as primarily operational, a substantial 56% of their time is actually dedicated to strategic initiatives. These strategic activities encompass crucial functions such as in-depth analysis, forward-looking planning, and vital stakeholder engagement. However, the report indicates that fragmented technology stacks, incomplete automation, and cumbersome reporting processes are significantly hindering their ability to fully embrace and execute these strategic responsibilities. This creates a widening chasm between the strategic demands placed upon equity teams and the foundational technological support they receive.
Michael Madigan, General Manager at Certent, articulated the core of this challenge, stating, “Equity teams are being asked to do more, but their systems haven’t kept pace.” He further elaborated on the current market dynamics driving these concerns, noting, “With IPO activity surging in 2026, combined with ongoing M&A and transitions to private status, we’re seeing unprecedented cascading demands: compliance requirements shift, regulatory scrutiny increases, and scalability becomes critical. When legacy systems can’t handle this complexity, companies face real risks including compliance gaps, poor employee experience, and operational bottlenecks during growth events. Equity professionals need technology that reduces that friction so they can focus on supporting strategic business decisions.”
Certent, a provider of employee equity management solutions, positions its platform as designed for both simplicity and scalability, capable of supporting companies from their initial funding stages through to public offerings and beyond without the need for disruptive data migration. The platform offers organizations the flexibility to choose between software-only solutions or comprehensive plan administration services. Crucially, for both public and pre-IPO companies, Certent emphasizes maintaining control over their equity data and broker selection, a critical consideration for many organizations navigating complex financial landscapes.
The Root of the Concern: Fragmented Technology and Operational Hurdles
The 2026 Equity Management Outlook delves deeper into the reasons behind equity teams’ anxieties regarding technological limitations. The report reveals a landscape characterized by significant technological fragmentation. A substantial 40% of organizations are currently operating with three or more distinct systems for equity management, while an even more concerning 57% continue to rely heavily on spreadsheets for critical functions. This reliance on disparate systems and manual tools creates inherent inefficiencies and introduces a higher risk of errors.
Beyond the sheer fragmentation, several compounding barriers are identified as obstacles to effective equity management and growth. Forty-three percent of respondents cited technology limitations as a primary impediment to achieving automation. Data quality issues emerged as another significant challenge, with 42% of teams struggling to maintain accurate and reliable data. Furthermore, 39% of professionals reported difficulties in integrating their various technology solutions, further exacerbating operational inefficiencies.
As the pressure of manual processes and compliance obligations intensifies, equity management teams are actively prioritizing technological capabilities that can streamline their workflows. The survey data indicates a clear demand for solutions that offer:
- Automation of Routine Tasks: A leading 48% of respondents identified this as a top priority, aiming to free up valuable time for more strategic work.
- Advanced Analytics: Also cited by 48%, the need for deeper insights into equity data is paramount for informed decision-making.
- Predictive Modeling: Another 48% are looking for tools that can forecast future equity scenarios and their implications.
- System Integration: A significant 46% of teams are seeking seamless integration across their technology platforms to ensure data consistency and operational fluidity.
- AI-Powered Insights and Recommendations: Emerging as a critical need, 46% of respondents believe artificial intelligence can provide valuable intelligence and guidance for their equity strategies.
These findings underscore a clear industry trend: equity management is evolving from a purely administrative function to a strategic driver of employee engagement, capital allocation, and overall corporate value. The current technological infrastructure, however, appears to be lagging behind this evolution, creating a bottleneck for progress.
Broader Market Context: A Landscape of Transactions and Regulatory Scrutiny
The concerns articulated in Certent’s report are amplified by the prevailing market conditions of 2026. The surge in Initial Public Offering (IPO) activity, a phenomenon that has been building momentum, presents both opportunities and significant operational challenges for companies. Each IPO necessitates a rigorous review and often an overhaul of equity compensation plans, equity administration, and compliance reporting. The pressure to accurately track and manage equity for a newly public shareholder base, which can expand exponentially from a private company’s limited group, is immense.
Concurrent with the IPO boom, the market continues to witness a high volume of Mergers and Acquisitions (M&A). These transactions frequently involve the complex integration of disparate equity plans and cap tables, often requiring rapid adjustments to ensure compliance and equitable treatment of employees from both the acquiring and target companies. Furthermore, the ongoing trend of companies transitioning back to private status, while less common than IPOs or M&A, also introduces unique complexities related to equity management, particularly concerning valuations and shareholder rights.
This dynamic market environment is further intensified by increased regulatory scrutiny. As governments and financial authorities worldwide seek to ensure transparency and fairness in financial markets, companies with equity compensation programs are facing heightened expectations regarding disclosure, compliance, and the accuracy of their reporting. This includes adherence to evolving accounting standards, tax regulations, and securities laws.
The Cascade of Demands: Compliance, Employee Experience, and Operational Efficiency
The confluence of these market trends and regulatory pressures creates a cascade of demands on equity management teams. As Michael Madigan highlighted, compliance requirements become more stringent, regulatory oversight intensifies, and the need for scalable systems becomes a critical imperative. When legacy systems falter under this weight, the consequences can be severe and far-reaching.
- Compliance Gaps: Outdated or fragmented systems are prone to errors in data tracking and reporting, potentially leading to significant compliance failures. This can result in hefty fines, legal repercussions, and reputational damage. For instance, misreporting stock option grants or awards can lead to incorrect tax liabilities for both the company and its employees.
- Poor Employee Experience: Equity compensation is a powerful tool for attracting, retaining, and motivating talent. If employees cannot easily access information about their equity, understand its value, or navigate the exercise and sale process, it can lead to frustration and disengagement. In a competitive labor market, a clunky or opaque equity management system can be a significant detractor.
- Operational Bottlenecks During Growth Events: Crucial moments like IPOs or major acquisitions are often marred by operational inefficiencies when equity management systems cannot cope. This can delay critical transactions, hinder post-merger integration, and create significant stress for all parties involved. The inability to quickly and accurately generate reports for investors, underwriters, or regulatory bodies can have immediate and detrimental financial consequences.
Certent’s Role and Future Outlook
Certent’s Equity Management Outlook report serves not only as a diagnostic tool for the industry but also as a platform to highlight its own proposed solutions. The company emphasizes its platform’s ability to simplify reporting, minimize manual processes, and consolidate equity management into a single, cohesive system. By achieving these objectives, Certent aims to enable equity teams to reduce their focus on operational complexities and dedicate more time and resources to supporting strategic business decisions.
The company is actively engaging with the industry to address these challenges. Certent has scheduled an upcoming webinar on November 3, 2026, at 1:00 PM ET, aimed at providing a deeper understanding of the trends, obstacles, and opportunities impacting equity management professionals. Furthermore, Certent will be showcasing its equity management platform at the 2026 NASPP Conference, scheduled to take place from October 12-15 in Orlando, Florida. Attendees will have the opportunity to visit booth 40 to learn more about how organizations can simplify their equity programs and achieve confident scalability.
The 2026 Equity Management Outlook report underscores a critical juncture for companies. As the complexity of equity management grows in tandem with market dynamism and regulatory demands, organizations that fail to invest in modern, scalable technology risk falling behind. The findings strongly suggest that a strategic approach to technology, focused on automation, data integrity, and seamless integration, is no longer a luxury but a necessity for survival and success in the evolving corporate landscape. The ability of equity teams to transition from operational custodians to strategic partners hinges on the availability of robust, future-proof technological solutions.
