Employee Stock Purchase Plans

Abstract

Reports of renewed of interest in Employee Stock Purchase Plans have recently appeared, perhaps driven in part by the robust state of the stock market, that give a positive glow to these plans. But HR professionals should react with caution and carefully examine all aspects of these plans before enhancing or adopting one. Plans have recently been terminated and made less attractive to employees, and many companies have passed on the idea. Important data affecting plan design and employee participation have not been reported that contribute to a low level of interest. Involvement of major HR consultants is lacking and HR specialists appear to be in no hurry to champion these plans. Despite these factors, HR professionals should give these plans serious consideration because of their potential value for compensating employees in certain circumstances.