Synthetic Equity tokenizes employee rewards on the blockchain

06 May 2022 3 min. read

Abu Dhabi-based management consulting firm Agile Dynamics has launched Synthetic Equity, a new venture that brings together the worlds of compensation & rewards with blockchain-based tokenization technology.

“We’re convinced that blockchain technology can revolutionise not just financial services, but the dynamics of many other sectors and segments,” says Paul Lalovich, a partner at Agile Dynamics and the founder of Synthetic Equity.

One of those segments is total rewards – a domain that clusters all benefits, compensation, and rewards that employees receive from their organizations.

Compensation & Rewards on the Blockchain

“Organizations with well-defined total rewards and an approach aligned to the business strategy enjoy better employee performance, both in terms of productivity and employee engagement,” explains Lalovich.

With the launch of Synthetic Equity, Lalovich now believes the venture can take the field to the next level. “Asset tokenization can introduce a new layer of flexibility, efficiency, personalization and empowerment to total rewards.”

For one, “forward-thinking organizations can use blockchain technology to speed up, simplify, streamline and enhance the effectiveness of their rewards processes.” At the same time, tokens can be used to personalize rewards both to the needs of the organization (or one level down: the business unit or team) and the employee.

One of the key benefits of Synthetic Equity tokens versus company stocks on paper is that organizations can offer attractive incentive plans while not having to dilute ownership. Lalovich: “Like traditional equities, digital tokens can be issued through vesting plans and can be repurchased or transferred. Synthetic equity is transferred through transactions, blocks, and distributed token ledgers.”

By creating such a system, organizations can take empowerment (and hence engagement) to a higher level. “Synthetic equity plans can be used as a means for incentivization and retention.” Meanwhile, it could also be used as a lure for new employees (beyond the already crypto-savvy talent base on the market) and even for partners in the wider value chain such as suppliers and independents.

Lalovich: “In today’s rapidly changing world, all stakeholders, including employees, suppliers, partners, and gig economy participants, must be invited to contribute. When engagement rises, so does productivity – and to reach the breakthrough performance and desired levels of innovation, it must be fueled by a much more powerful sense of purpose and participation.”

Paul Lalovich, Philipp Kishkovarov, Christopher Page and Tesha Teshanovich

Meet the team

To set up and grow Synthetic Equity, Lalovich has assembled a senior founding team consisting of Philipp Kishkovarov (Chief Technology Officer), Chris Page (Chief Investment Officer), Tesha Teshanovich (Head of Growth) and Arthur Iinuma, Co-Founder & President of ISBX (a token economics firm) who has been engaged as a subject matter expert advisor for token economics.

“For this unique project, we have recruited and assembled a multidisciplinary team of experts that brings together capabilities in the fields of technology, management consulting, media, and art.”