The Better the ESPP, the Better the Return on Investment

In the NCEO's new survey on employee stock purchase plans (ESPPs), we found that the better the terms of the plan, the better the return on investment plan administrators believed the company received from having a plan.

Overall, 65% of the respondents said that an ESPP was a beneficial or excellent investment, but if the discount was 10% of less, only 18% did, while 41% believed it did if the discount was 11% to 15%. Similarly, 57% said the ESPP was a beneficial or excellent investment if there was a three-month look-back feature, but 88% did when there was a 12-month. Finally, if the price is determined only at the end of the offering period, 53% said the ESPP was a beneficial or excellent investment, but 75% said it was if there was a look-back feature to the start of the offering period. These results are just a few of the dozens of insights from the new survey, the largest ever done of ESPPs.

To learn more about the survey and to order results, go to this link.