Employee Stock Purchase Plan


Also found in: Acronyms, Wikipedia.

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 ?
On November 16, 2009, Treasury issued final regulations relating to employee stock purchase plans (ESPPs) under Sec.
Therefore, because the Employee Stock Purchase Plan is a stock purchase program that extends coverage to "employees," it should have been extended to these workers as well.
Employee stock purchase plans (ESPPs) can complement workplace savings plans and provide a way for employees to diversify their retirement investment efforts.
In the future, more companies are expected to use performance-based plans, probably in a package along with traditional stock options, restricted stock, and an employee stock purchase plan.
Other terms improve health care benefits, call for a $1,100 lump-sum payment in the first year of the contract and payments in the same amount in cash or BellSouth stock in the second and third years, establish an employee stock purchase plan effective in April 1996; and increase pension benefits by between 17 and 20 percent.
Finally, the company stated that at its annual meeting held earlier on Wednesday, its shareholders elected directors Gary Bhojwani, Ellyn Brown, Stephen David, Robert Greving, Mary (Nina) Henderson, Charles Jacklin, Daniel Maurer, Neal Schneider and Frederick Sievert, to serve terms expiring at next year's annual meeting; approved the adoption of its Employee Stock Purchase Plan; the adoption of its Amended and Restated Section 382 Shareholder Rights Plan; ratified the appointment of PricewaterhouseCoopers LLP as its independent registered public accounting firm for 2018; and on a non-binding advisory basis, voted for the compensation paid to the company's named executive officers, as mentioned in the proxy statement for the annual meeting.
The employee information statement must either be contained on the appropriate form (i.e., Form 3921 with respect to incentive stock option exercises or Form 3922 with respect to transfers of stock purchased under an employee stock purchase plan), or contained on a "substitute form" that meets the format and content requirements contained in Publication 1179.
New York, NY, June 03, 2011 --(PR.com)-- Kristin Taylor, Manager, Compensation & Benefits, BDO USA LLP to Speak at KC's Understanding New Employer Reporting Requirements for Incentive Stock Option and Employee Stock Purchase Plan Live Webcast
Incentive stock options (ISOs) and options granted under an employee stock purchase plan are also excluded from coverage, even if the plan offered a discounted purchase price.
* Employees of corporations with an employee stock purchase plan (ESPP) often fail to participate fully in the plan because they don't understand why it can be a good deal.
To attract and retain such a work force, Royal Caribbean offers a better-than-average package of employee benefits - health insurance that includes dental and vision coverage, a pension plan, tuition reim- bursement, life insurance, an employee stock purchase plan and special deals on vacation cruises.
Exclusion of Incentive Stock Options and Employee Stock Purchase Plan Options from Wages

Full browser ?