Employee Stock Purchase Plan (ESPP) Design

Stand out to talent with a high-impact ESPP.

Employee stock purchase plans (ESPPs) are making a rapid comeback. In an age of dwindling broad-based granting, ESPPs are a cost-effective way to drive share ownership among employees. Companies are even evaluating some of the higher-cost ESPPs under ASC 718. Why? Because the ASC 718 expense isn’t that high compared with the energy and excitement they generate.

But ESPPs can get complicated. There are a dozen ways to architect them. Participation rates vary tremendously, partly from the favorability of the program terms and partly from the way the programs are communicated.

If your ESPP isn’t generating results—or you’ve shrunk your general equity compensation program, or non-executive retention has become an issue—a new ESPP design could be a game-changer. Don’t settle for a generic program. We can help you choose the design that’s best for your organization.