Not sure if you should offer an ESPP? Check out Nine Reasons to Offer an ESPP. Download Now

So you're thinking of taking the ESPP plunge? Or maybe you’re just starting to research ESPPs? Or you’re wondering if the current provider you have is the right one?

You've come to the right place!

For more than 40 years, Computershare has administered employee stock purchase plans (ESPP) of all sizes and complexity. Our solution is designed to serve the participant, to help them engage with your ESPP while providing full-service support on the administration of your plan that is thoughtful and inclusive of all your needs.



ESPP Service Highlights

Administration Service Highlights

You'll have access to an expert team to guide you through design, implementation and on-going administration, with:

Full-service support to manage every aspect of your plan.
Employee communications tailored for your ESPP to boost enrollment.
Automated enrollment for eligible employees from any device.
Full and fractional share support lets you offer an ESPP no matter how high your current stock price.
Tax reporting support ensure you never miss a single filing requirement.
Participant Service Highlights

Our solution focuses first on the participant, to ensure they engage with the plan you offer:

24/7 account access across all devices lets employees manage accounts the way they want.
Full-service support with live chat on the web, IVR and live call center.
Multi-lingual/currency support makes your plan more inclusive for participants.
Single-sign on lets participants access accounts from your intranet or HR portal.
Educational tools on ESPPs, from articles to videos to podcasts and more.

Got questions about ESPPs?

Check out our brief FAQ below to get started.

  • ESPP stands for employee stock purchase plan. It is a contributory stock plan where employees voluntarily contribute a portion of their salary to the purchase of company stock.
  • There are two basic flavors of ESPP.

    The first is what is called a qualified ESPP. You'll also hear the term 423(b) ESPP, which refers to the section of the US internal revenue code (IRC) that defines this type of ESPP. This type of plan offers special tax savings to participants when they sell the stock after an appropriate holding period. To qualify, the plan design must meet certain criteria as defined by Section 423(b) of the IRC.

    The second is call a non-qualified ESPP. There are no limits to the design of this type of ESPP, but there are also no special tax savings for participants.

  • There are many features to know when designing your ESPP. Here are some of the most common.

    • Discount. When purchases are made through the ESPP, they are made at a discount off the stock's current fair market value. The most common discount is 15%. That means participants get a bonus in the value of stock purchased every time.

    • Company Match. For each purchase, the company matches all or a certain portion of the participant's contribution.

    • Offering Period. The time in which contributions are collected prior to the next purchase. This could be any timeframe – weekly, monthly, annually, etc. The most common offering period is six months.

    • Lookback. When determining the purchase price, you "look back" to the stock price at the start of the offering period as well as on the purchase date, then use the lesser of the two. If the price at the start of the offering period is less than on the purchase date, that is an additional bonus for participants.

  • We sure think so! The ESPP is a great benefit for your employees that gives them the ability to easily become owners in the company. Check out Nine Reasons to Offer an ESPP for even more reasons.

Have more questions about ESPPs?

Ready to get started on launching your ESPP? Have more questions on Computershare’s ESPP solution? Or maybe you need more help understanding what an ESPP is and why you should offer one? Fill out the form below and one of our experts will reach out to you.

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