Preparing for IPO Success: Your Comprehensive Guide for ESPPs
Employee Stock Purchase Plans (ESPPs) are a powerful tool for fostering employee ownership and engagement. For companies preparing to go public, however, managing ESPPs during an IPO transition demands strategic planning and adaptability. This guide...
Are Your Employees Being Overtaxed on Their Equity Compensation? Understanding Cost Basis and ESPP Taxation
Equity compensation plans, such as Employee Stock Purchase Plans (ESPPs), are valuable tools for attracting and retaining top talent. However, the tax implications associated with these plans can be a source of confusion for employees,...
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
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...
