HR Advisory

Employee Stock Purchase Plan (ESPP) Design

Stand out to talent with a high-impact ESPP.

Employee stock purchase plans (ESPPs) are again on the rise. When broad-based granting budgets tighten, ESPPs are a cost-effective way to drive share ownership among employees. Companies are even evaluating and implementing some of the more complex, higher-cost ESPPs available. Why? Because the ASC 718 expense isn’t that high compared with the energy they generate and value they deliver.

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.

Meet Our Experts

David Outlaw, CEP

Managing Director, Valuation & HR Advisory Services

Takis Makridis

President & CEO

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