In continuing our Equity Compensation series, today we are talking about ESPPs. Wondering what ESPP stands for? Well, it’s an Employee Stock Purchase Plan and the most common form of equity compensation that we will cover. It’s available to almost any full-time employee of a publicly-traded company; and for this reason, it’s my favorite kind of compensation. 

So what is an ESPP exactly? It’s a great vehicle to allow employees to purchase employer stock, preferably at a discount. The advantage is you get to buy the stock from the company you work for at a price that is lower than it would be if purchased on your own. When you participate in an ESPP, your investments are held in a regular old investment account. Check out the episode to find out why and maybe some other useful tips too!  

You will want to hear this episode if you are interested in...

• Who can get an employee stock purchase plan? [0:21]
• Advantage of an ESPP [1:25]
• Key differences between an ISO & an ESPP [2:32]
• How ESPPs operate [3:56]
• The ins and outs of offering periods [5:02]
• The sales tip section: How NOT to get referrals! [7:58]
• This week’s FLASHBACK [10:17]

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