New PwC/NASPP Study Shows Multinational ESPP Participation Declining

A new study of equity compensation in global companies finds that participation in stock purchase plans has declined since 2007. A majority of the companies that reported levels of participation between 26% and 50% now say that rates have fallen to 0% to 25%. The NCEO has previously found that a key determinant of stock purchase plan participation is past stock price performance, even though the economically rational approach would be to buy more when prices are low. Instead, employees tend to build expectations of future growth based on their most recent experiences. The study also reports data on trends in the number of companies offering equity plans, the kinds of equity offered, and tax and compliance issues.