The Impact of Stock Purchase Plan Participation on Workers’ Individual Cash Compensation

Abstract

This study investigates if stock purchase plan participation within an organization leads to (1) an increase in workers’ individual cash compensation through enhanced individual job performance and (2) an increase in individual cash compensation beyond the cash compensation increase obtained through enhanced individual job performance. The sample consists of 5385 worker‐year observations from a major financial institution. Results are consistent with the study's two hypotheses.