MATT CONNOR SHARES HIS EQUITY CAREER STORY
Meet Matt Connor, FGE, Director of Global Equity Management at Lucid Motors and Vice Chair of the 2024-2025 GEO Board.
With a career spanning over two decades, Matt has navigated various roles and challenges in the share plan industry. Currently leading the Global Equity Management team at Lucid Group, Matt played a pivotal role in the company's public listing via SPAC in July 2021. In 2020, he was honored as a Global Equity Fellow, recognizing his expertise and contributions to the field.
Let's all get to know Matt better as he shares his career path, offers insights from his extensive experience and discusses his journey through the equity compensation industry.
GETTING STARTED AND CAREER MOTIVATION
The field of equity compensation and share plans is interesting in that no one grows up dreaming about it or even majors in it at university. Everyone in this field got here through various paths. Like most practitioners, I ended up working in share plans purely by chance.
I was working for a US benefits consulting firm handling Defined Contribution (401K) and Defined Benefit (pension) plans. One of the accountants I worked with moved to Salomon Smith Barney in 1999 to help build out their share plan business, where companies could outsource administration. She recruited me in 2000 to help with their new client onboarding and implementation teams.
I knew nothing about the share plan business or equity compensation, so I went to Borders (pre-Amazon days!) and bought “Employee Stock Options for Dummies”!
The year 2000 was the height of the first dot-com bubble! The internet was a novelty, and everyone was starting their own dot-com company. It was exciting to watch companies go public and people become millionaires overnight at the IPO.
It was also a dark time with the Worldcom and Enron implosions, which put a spotlight on share plans. Things were always changing and evolving, and it was pretty heady to be part of that experience.
This is such a niche industry, always changing and evolving. I love that governments, regulatory bodies, and tax authorities constantly throw new challenges at providers and issuers, requiring them to react and adjust.
No share plan is the same, so the variability and creativity in plans are exciting.
I went from working for a service provider to being part of two IPOs as an issuer.
I loved my service provider days, working with some of the world's most famous companies to administer their plans.
When I moved to the issuer side and owned the design of newly public share plans, that was thrilling. For the first time, I got to design a share plan from the ground up.
The decisions I make in designing the share plan scheme have a direct and meaningful impact on my colleagues' lives. It’s pretty amazing and fulfilling!
This field has so many passionate share plan fanatics; it’s fun to geek out with them when we are together.
PROUDEST MOMENT AND BIGGEST SUCCESS
Drafting the new employee stock purchase plan (ESPP) for Lucid as a newly public company was a proud moment. Going public via SPAC merger was challenging, and having seen so many IPO companies have prices that pop then settle lower, I wanted an ESPP program that was flexible and delivered real value. The internal recommendation was to do the easy path for the ESPP, with a 6-month offering and purchases with a look-back. I pushed for a full “Lucid” style program, with a 24-month offering, 6-month purchases, look-back, and most importantly, a reset feature. This reset allows for protection against a declining stock price, setting the next 24 months at the lowest price. It’s been a huge win for our employees, ensuring they get the best price on purchase day.
What I love about my career is experiencing both the provider and issuer sides. It provides a well-rounded perspective that's invaluable when facing challenges.
Every share plan has unique elements that can be challenging for internal resources or providers. Having experience on both sides allows for a holistic view and finding the best path forward.
Drafting and implementing the Lucid Motors public plan is my biggest success.
I was hired in September 2020 to help with their path to IPO, which happened in 9 months via SPAC merger. We needed an option/RSU program in place immediately post-IPO to continue hiring key tech talent and design an ESPP program that worked both in the US and internationally.
It was a complex process, with many moving parts before and after the public event, and it strained me and my team of one, Ramon Dominguez, to the brink. But we got there, and the company didn’t miss a beat as we launched our first vehicle, the Lucid Air.
This took lots of caffeine, wine, and adrenaline! Once the IPO is set, it's a full sprint to prepare everything, with no rest after going public. Planning is crucial, though it sounds obvious, it’s the hardest part of an IPO. There are many steps, data, and parties to coordinate, making it easy for events to overtake plans. Lucid had a point person for Public Readiness whose only job was to coordinate and track all workstreams. This herculean task was invaluable, allowing the equity team a full seat at the IPO project table and alleviating most surprises and fire drills.
FAVOURITE SHARE PLAN
Absolutely, the Google Stock program will always have a special place in my heart.
My “big break” in share plans came when I helped Google go public from the provider side. After they went public, they rolled out the Transferable Stock Option (TSO) program. This unique program allowed option holders to transfer their options to a participating bank.
It was so innovative that Google won a GEO award. I was part of the provider team that had to design the admin platform to handle this type of transaction.
The TSO program showed me how creative a share plan can be to deliver value to the holder. The exposure to complex tax and securities rules opened my eyes to how a great idea in theory needs to be operationalized and communicated effectively.
ADVICE, KNOWLEDGE AND INSIGHTS
Get involved - networking is crucial in this industry.
Since most folks land in this role, it can be overwhelming with all the rules, laws, best practices, and operational issues.
Having a strong network to lean on and discuss issues, problems, or ideas with is critical. This is a close-knit industry where I know I can reach out to colleagues who would drop everything to help me.
How much fun this would be. I literally love this industry and the ups and downs that come with it.
Equity compensation has the power to change lives for all levels of award recipients. Being part of that journey is amazing! It’s not only an honor, but also extremely rewarding.
Learn all you can—we are all still learning. This industry is complex and requires cross-functional knowledge. There aren’t many fields that require proficiency in tax, legal, accounting, HR, communications, and finance (and more). Don’t get discouraged!
How can they best position themselves for success in this field?
Organizations like GEO are critical—they provide a marketplace of ideas with practitioners from the provider, advisor, and issuer sides.
Get involved with local chapters, attend webinars, and the annual GEO conference, which is unrivalled in content and networking opportunities. Seek out folks from other companies and ask questions; it’s how we all learn in this business.
I think we all have a few mistakes we'd like to forget. Some are small, some large, but they all offer great (albeit painful) learning opportunities.
What did you learn from that experience?
Haste makes waste—an old maxim, but true. Since share plans touch so many disciplines, understanding downstream effects is critical. If you rush, the chances of an unintended downstream issue rise exponentially.
Always take the time to review and test your processes before rushing into action.
That this career has so many facets—you don’t need to be an expert in every area, but focusing on the key areas you love and becoming an expert in those has helped me carve out a reputation as an SME and be recognized as a Fellow of Global Equity.
How has this knowledge impacted the way you approach your work now?
Accounting isn’t my forte. I understand how it works, but I’m not too proud to reach out to my network for more information when a situation arises. I know I don’t know everything in this industry, so asking for help is key.
I’ve been fortunate to have several mentors who have significantly shaped my career. Karen McDonald and Brian Penzel of Morgan Stanley taught me the art of great relationship management. Their guidance was pivotal in my career, and I wouldn't be where I am today without their support.
Emily Cervino has been my go-to ESPP guru for many years. Her expertise was crucial in designing and gaining approval for my ESPP plans. She generously shared her knowledge, time, and wisdom.
Maria Robins was instrumental in expanding my network—an essential asset in this industry. Her network is unparalleled, and she always knew who could answer any question I had. Her willingness to connect me with valuable contacts was crucial to my career growth.
FUTURE OF EQUITY
Equity compensation is a powerful equalizer with the potential to change lives at all levels of an organization. I see a trend towards deeper integration of equity in companies, reaching employees across all levels and expanding internationally.
Share ownership might not have always been a cultural norm in some countries, but as multinational corporations extend their plans globally, we will see laws, regulations, and tax regimes becoming more equity-friendly.
As equity compensation becomes recognized as a tool that benefits all employees, countries will continue to liberalize their policies to encourage share plans within their borders.
While the US and UK have been the primary drivers of share plans, I anticipate other countries will begin to embrace and foster share plans with favorable tax, legal, and accounting regimes. We may see a surge of creative share plan schemes emerging from unexpected regions. I’m excited to harness these innovative ideas to design share plans that best meet the needs of my company and employees.
PERSONAL CAREER GOALS
I’m particularly interested in exploring the intersection of Deferred Compensation arrangements and share plans. Additionally, I’m keen to investigate how similar arrangements outside the US could enhance share schemes.
This aligns with the potential renaissance of tax-qualified plans outside the US. I’m excited about the future possibilities and the opportunities to integrate these evolving concepts into share plan designs.
I plan to continue learning as much as possible, with GEO conferences being one of my favorite learning venues.
Connecting with professionals from around the world and hearing their stories is incredibly enriching.
As Vice Chair of the GEO Board of Directors, I am committed to contributing to GEO's vision and expanding its reputation as a leading provider of global share plan information.
I’m eager to support the direction and growth envisioned by Gabbi Stopp and contribute to the organization's continued success.
My Equity Career aims to uncover the personal and professional journeys of select GEO members in the share plan industry. By sharing their experiences, we hope to provide valuable insights and advice for those interested in or currently working in our field.
Through these stories, we seek to celebrate the diverse paths, challenges, and achievements that shape our global community, offering inspiration and guidance to both newcomers and seasoned professionals alike.