Employee Stock Purchase Plans


The Issuer’s Guide to Cashless Participation

Cashless Participation 101 Maybe you’ve seen Cashless Participation mentioned in a LinkedIn post, perhaps you’ve seen it show up on an industry conference agenda, or maybe you’re offering it at your company. Regardless of where...
The Benefits of Optimizing Your ESPP

The Benefits of Optimizing Your ESPP

By increasing employee engagement, ESPPs boost overall corporate performance. ESPPs are broad-based programs that provide companies with a cost-effective way to extend ownership opportunities to their employees. While that sounds great on paper, the real...

ESPP Share Limits and the Valuation Impact

Ignoring share limits can increase your compensation expense. In ESPP Valuation: 4 Missing Pieces, we highlighted several potential reductions to the valuation of an ESPP share under ASC718. In this brief, we will provide more...

ESPP Accounting 101

Everything you want to know about how to account for ESPPs. Under ASC 718, compensation expense for employee stock purchase plans ("ESPPs") must be recognized in a company's financial statements.  The only exception is a...

What You Should Know About Rising Interest Rates and Your ESPP

As interest rates increase, companies should optimize ESPP valuation by reducing fair value for interest foregone. Most experts anticipate that the United States will continue to increase interest rates during 2022. Over the last 20...

What is an ESPP?

What is an ESPP, how does it work, and what benefits can it provide to employees? What is an ESPP? An Employee Stock Purchase Plan (“ESPP”) is an employee benefit plan that allows employees to...

ESPP Valuation – 4 Missing Pieces

You may be overvaluing your ESPP expense. Current Market Practice ESPPs are valued based on their plan design features, which frequently results in multiple components to estimate the fair value. The accounting requirements under ASC...

Counting the Costs and Balancing the Benefits

Financial Engineering for ESPPs. Fidelity Investments and Infinite Equity teamed up to explore how ESPP elements fit together to help companies engineer a plan to manage financial implications and deliver balanced benefits.

“Cadillac” ESPP Considerations: What You Need to Know Before Adopting

Balance this exceptional employee benefit with compliance and administrative ease. Introduction Employee Stock Purchase Plans (ESPPs) are common among public companies, and it is easy to see why. On the participant side, ESPPs allow a...

The Case for an ESPP at IPO

A unique opportunity to ensure an ongoing ownership culture. 2021 has been a banner year for IPOs, and particularly for companies going public via a special-purpose acquisition company (“SPAC”). Expectations were high coming into the...