Employee Stock Purchase Plan


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Employee Stock Purchase Plan (ESPP)

A plan usually linked to a corporation's payroll deduction system allowing employees to purchase shares at a discount from current market value.

Employee Stock Purchase Plan

An employee benefit that some firms offer allowing employees to use payroll deductions to buy shares in the firm at a discount from their fair market value. The firm offers this to employees at certain times; those who participate in the program allow the payroll deductions to accumulate for a certain number of pay periods. At the end of the period the firm uses the funds to purchase the number of shares worth that amount. The percentage discount varies from firm to firm, but can be as much as 15%.
References in periodicals archive ?
This alert serves as a reminder of certain year-end reporting requirements imposed under Section 6039 of the Internal Revenue Code of 1986, as amended, with respect to incentive stock option exercises and transfers of stock acquired under employee stock purchase plans occurring during 2017.
companies to enhance their employee stock purchase plans in an effort to improve their benefits packages.
The letter informed the Company that, at the time of the notice provided to NASDAQ, the Company was not in compliance with the shareholder approval requirement with respect to employee stock purchase plans set forth in Marketplace Rule 4350(i).
With regards to the shareholders approving the Employee Stock Purchase Plan, Herrema said, "Much of Loring Ward's future depends upon the performance of its employees, and when they are part owners of the company, they have an added stake in working to secure its future.
Stockholders also approved the proposed amendments to the Company's 1999 Employee Stock Option Plan, including an increase in the number of shares reserved for issuance by 2,500,000 shares, and amendments to the Company's Employee Stock Purchase Plan, including an increase in the number of shares reserved for issuance by 2,000,000 shares.
Stockholders approved the amendment to the 1998 Employee Stock Purchase Plan for employees to increase the number of shares of the Company's common stock that may be issued under the Purchase Plan from 3,000,000 to 4,000,000 shares.
Additionally, the stockholders approved an amendment to Borland's 1999 Employee Stock Purchase Plan which authorizes an additional 900,000 shares of common stock that may be issued under the plan.
has advised Black Box that a total of 11,987,365 shares of Norstan common stock were validly tendered in the offer and not withdrawn, not including 434,015 shares tendered pursuant to guaranteed delivery procedures and fractional shares under Norstan's employee stock purchase plan.
That can be in the form of stock options, employee stock ownership plans (ESOPs), employee stock purchase plans (ESPPs) or similar arrangements.
For stock options, the IRS may look at a number of issues, such as whether there has been proper income inclusion on option exercise (or on a disqualifying disposition of stock acquired from such exercise), participation rights in employee stock purchase plans and general statutory compliance.
For stock options the IRS may look at whether there has been proper income inclusion on option exercise (of on a disqualifying disposition of stock acquired from such exercise), participation rights in employee stock purchase plans and general statutory compliance.

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