Employee stock purchase plans (ESPPs) offer employees a fantastic opportunity to establish an ownership stake in their company and share in its potential growth. The company benefits from ESPP participation as well, because it fosters a positive culture where everyone is focused on a shared goal. While this sounds like a win-win situation, it turns out that many people miss out on this important opportunity.
When privately held companies prepare for an IPO, they have to consider many areas that will be undergoing substantial transformation, such as accounting, legal, corporate governance, and equity incentive programs. The latter is especially important as equity compensation is a key element in the creation of shareholder value.
Employee stock purchase plans (ESPPs) provide an effective way to incentivize employees and offer lower compensation cost and tax advantages to the issuer. When developing an ESPP plan, companies must consider a number of regulatory requirements which may affect the cost of the program and participation rates.
The 7th Annual Regional New England Conference will be held in the Greater Hartford, CT area on Thursday, July 16th, 2015. As those who have attended a Connecticut/Boston conference in the past know, this well-established event is an excellent opportunity for learning and networking with equity compensation colleagues.
Offering an employee stock purchase plan provides your company with the opportunity to implement a broad-based equity program that is a benefit to all employees. An ESPP is an attractive opportunity to employees – from the discounted stock purchase price to the simplified enrollment through pre-determined payroll deductions. Implementing an ESPP offers significant value to employees and there are 5 reasons why your company should consider designing a plan today.