eXp Realty is a publicly traded real estate company that specializes in helping its agents sell more homes. They do this through different agent equity programs, which reward their agents with stock awards for doing well and achieving specific goals.
So what are the eXp Realty stock awards, and how do they work? This article will look at these and how you can benefit from them if you work with eXp Realty.
Basic eXp World Holdings Stock Awards
Agent Equity Program
Agents participating in the Agent Stock Purchase Plan (also known as Agent Equity Program) can own eXp company stocks at a discounted rate. By allowing the company to withhold 5% of their commissions, they can acquire eXp Realty stocks with a 10% discount.
This program does not have a vesting period. That said, agents have the option to participate in or opt-out of the program anytime they wish to. All they have to do is fill out the required form.
Sustainable Equity Plan
EXP Realty’s Sustainable Equity Plan, or SEP for short, is an agent equity program that rewards agents who do well. These include both top-performing agents and those with a high retention rate.
The company has set up this plan to help their employees have the same level of motivation as they would get from being small business owners.
To be eligible for the SEP, you must meet specific requirements, which include the following:
- Upon closing your first transaction with eXp Realty for each year, you’ll be rewarded $200 worth of eXp World Holdings, Inc. common stock.
- Upon reaching (or exceeding) your annual commission cap of $16,000, you’ll get $400 worth of eXp World Holdings, Inc. common stock.
- When you direct another real estate agent to the company, and the sponsored agent closes their first transaction with eXp, you’ll be rewarded $400 worth of eXp World Holdings, Inc. common stock.
Keep in mind that these stock awards are subject to a three-year continuous vesting period. As such, you and your sponsored agent must stay with the company during the vesting period to qualify for the stock awards.
ICON Agent Stock Award
The ICON Agent award is another stock award top-performing eXp Realty agents can enjoy. The program rewards agents up to $16,000 worth of equity upon reaching certain production and cultural commitment levels.
To get an ICON status, you must be able to achieve any of the following during your anniversary year:
- You sold 20 homes on top of reaching your annual cap.
- You generated a yearly gross commission income (GCI) amounting to $500,000 and closed at least ten transactions.
- You paid the equivalent ICON qualifying fee ($5,000).
As an ICON agent, you will be rewarded $8,000 worth of eXp Realty stocks. You’ll get your ICON agent reward and recognition when the company purchases these stocks, usually on the 15th of the month. Note that this has a vesting period of three years.
Agents who can uphold their cultural commitment are also rewarded. What does that mean? It means that you’ll be evaluated 12 months after attaining your ICON status. If you satisfy any of the following requirements, you’ll be rewarded an additional $4,000 worth of EXPI stocks with a two-year vesting period.
- You’ve served as a mentor in the program for 12 months.
- You’ve become an ICON instructor and taught six classes the entire year.
- You’ve attended the ICONversations ten times and served as a panelist or moderator throughout the year.
- You’ve served as a member of the ICON vetting Committee with ten candidates vetted within the year.
Attendance to Events
Students with perfect school attendance get rewarded. The same is true for agents who have attended the two public events that eXp Realty holds yearly after attaining their ICON status. These are the EXPCON and Shareholder Summit.
For each event attended, the agent receives $2,000, with a total of $4,000. The good thing about this reward is that it does not have a vesting period. This means that the agent can own them immediately.
Features of the ICON stock awards include:
- Vesting periods: zero, two, or three years
- The number of shares awarded is based on the closing market price of EXPI common stock on the award date.
- All shares under the plan with vesting periods will be put in the individual agent’s Shareworks account, an online portal for managing eXp’s stocks plans.
eXp Realty Stocks Awards Explained - What it means to eXp agents
eXp Realty introduced several equity programs to award their high-performing and committed agents. Each program has different requirements that agents need to fulfill to qualify. Among these are:
- eXp annual cap (currently at $16,000)
- Selling your first home each year
- Inviting another agent and letting them close their first transaction with the company.
- A qualifying fee of $5,000 less than the capped transaction costs payable.
- Closing 20 transactions more in addition to the annual commission cap.
- Annual gross commission income of $500,000 or more with not less than ten closed transactions.
- Most of the stock awards have vesting periods.
- Attending the annual eXp Realty public events – EXPCON and Shareholder Summit.
eXp Realty Stock – EXPI Dividend
In August 2021, eXp World Holdings declared its first cash dividend amounting to $0.04 per share of its common stock. The cash dividend is applicable for the third quarter of 2021 and payable to qualified shareholders on August 30, 2021.
Selling eXp Realty Stock
A 10% discount applies to all stock awards when agents purchase them within their brokerage account. Understand that the stock price and the number of shares one can own are determined by the closing market value of the last trading day for EXPI stock.
If you want to sell your eXp Realty stock, you can contact a broker to see the current market price and then go from there. There could be some fees you will need to pay too.
Stock splits are a way for companies to make their shares affordable, allowing investors to purchase whole shares instead of buying many share fractions.
At eXp Realty, stock splits are important since the company issues shares to its agents to enhance productivity and growth.
If an agent is rewarded $200 stock awards after closing his first transaction each year, he’ll have 1.5 shares at $160/share. But with a stock split applied, at $80/share, he’ll get 2.5 shares.
If the stock prices continue to rise and there’s no split completed, the agents might not be able to have a full share whenever they receive an award.
Fortunately, eXp World Holdings completed a 2-for-1 stock split on February 16, 2021. This means that shareholders with EXPI shares prior to February 16 can now enjoy double shares at half the price.
eXp Growth Revenue Share
Over the years, eXp World Holdings’ revenues and cash flows have been growing exponentially. As a new company, EXPI did not enjoy a positive quarterly income before the last quarter of 2019. By the end of the same year, eXp World Holdings incurred around $10 million losses in net income.
However, the company was able to generate more than $30 million positive net income in 2020, at the height of the COVID-19 pandemic.
What’s more? The EXPI’s revenues have grown substantially as thousands of agents are added, and multiple companies acquired. In 2020, it surpassed the $1 billion revenue mark and ended the year with $1.79 billion.
Other Entities Under eXp World Holdings
Real estate is a big business, and there are countless companies in the industry. eXp World Holdings owns several brokerage firms, including:
- eXp Commercial – This is a separate commercial brokerage eXp World Holdings created in 2020. It now houses a number of agents across the United States and plans to go international soon.
- SUCCESS Enterprises – This is another addition to eXp World Holdings’ list of owned companies, which it also acquired in 2020. SUCCESS Enterprise lives up to its name, having established multiple digital content platforms, including the SUCCESS magazine, SUCCESS Newsletters, and SUCCESS.com
- Virbela – This powers eXp World, providing companies worldwide with virtual office environments. Among the companies that use Virbela are HTC, MIT Sloan School of Management, and PricewaterhouseCoopers.
- Showcase IDX – This platform makes local listings available on real estate websites by connecting these to the Multiple Listing Service (MLS). Showcase IDX boasts an advanced interface and powerfully built features, making it a leader in the real estate industry.
eXp Realty stocks are an excellent way to invest in the real estate industry, and if you’re a current or aspiring agent, they can be beneficial for your career. As we’ve discussed throughout this article, there are several ways that agents at eXp Realty can earn stock awards.
These include closing your first transaction each year, reaching production levels, and attending the two public events held by the company yearly, among others. If you want to learn more about how these stock awards work, don’t hesitate to book an appointment with us today.