An Employee Share Purchase Plan (ESPP) is a broad-based share plan, where employees can choose to purchase company shares through salary deductions with the company generally providing matching or discounted shares as an incentive to participate. Read our 8 reasons to offer an Employee Share Plan article
Companies are increasingly turning to ESPPs as a way of rewarding and motivating their global workforce. As well as encouraging employees to save at regular intervals during uncertain times and providing access to equity, often at a discount, ESPPs also engender greater employee loyalty, innovation and alignment with the company’s goals, which in turn supports companies during difficult periods.
Companies looking to offer an ESPP for the first time should seek out expert insight to understand how an ESPP can work for them, as well as best practice guidance on how to set one up.
Below are our 10 key steps for creating, building and maintaining an ESPP: