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2006 Employee Stock Purchase Plan (ESPP) and FAS 123(R) Survey Results

Has FAS 123(R) resulted in companies redesigning their employee stock purchase plans? We asked companies whether they expect to alter their ESPPs, and if so, how. A total of 111 companies responded in this survey conducted in February and March 2006 and released in May 2006.

It turns out that most companies expect to change their ESPPs in some way in response to new accounting rules that mean many tax-qualified ESPPs will show up on the sponsoring company's income statement, but far more are modifying their plans than are out-and-out eliminating them.

Users can sort the responses by industry, company size, and other variables to get the data that apply the most specifically to their own interests. They can also download a spreadsheet of all responses.

The results can be purchased for $75 for NCEO members and $100 for non-members. To order now, use the order form at the bottom of this page. You will receive your access information via e-mail within one business day.

The survey questions include:

1. Where are your company's headquarters?
2. What is your main industry?
3. How many employees does your company have?
4. What percentage of full-time employees participate in the ESPP?
5. What type of plan do you have?
6. How long ago was your ESPP implemented?
7. How long is the current offering period of your ESPP?
8. How big a discount does your ESPP offer?
9. What was the purpose behind implementing an ESPP?
10. How successfully is the ESPP meeting its goals?
11. Have you discontinued or do you plan to discontinue your Section 423 ESPP in light of the new expensing rules?
12. If you are planning to discontinue your ESPP, will you replace it by creating or enhancing another type of plan?
13. Are you planning to modify or have you modified your ESPP plan due to the new expensing rules?
14. If you are planning to modify or have modified your ESPP, what areas of the plan are changing?
15. If you offer a look-back feature and are planning to change it, how will you change it?
16. In what way do you plan to change the discount feature of your ESPP?
17. If you plan to reduce the discount, what will the new discount be?
18. If you plan to reduce the discount, how much lower than the old discount will the new discount be?
19. If you are planning to change the length of the offering period of your ESPP, what will the new offering period be?
20. If you are going to shorten the length of the offering period, by how much will it be shortened?
21. What other types of equity compensation does your company offer?
22. Do you plan to change any of these specific eligibility requirements for your ESPP in light of FAS 123(R)?
23. Do you survey your employees about how satisfied they are with the company ESPP?

Order Form for 2006 ESPP Survey Results (Online Access)

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Copyright © 2006 by The National Center for Employee Ownership (NCEO) (phone 510/208-1300; email nceo@nceo.org; WWW http://www.nceo.org/). All rights reserved.