ESPP

An Employee Stock Purchase Plan (ESPP) is a type of employee benefit plan that allows employees to purchase company stock at a discounted price.

Under an ESPP, employees typically contribute a percentage of their salary to the plan, which is used to purchase company stock at a discount, often up to 15% below market value. The discounted price is typically determined at the beginning of each purchase period, which can range from six months to a year.

ESPPs are a popular way for companies to incentivize and retain employees by giving them a stake in the company’s success. Employees can benefit from the potential increase in the company’s stock value over time, and the discount offered can make it an attractive investment opportunity.

ESPP by GEO Finance

GEO Finance offers services to assist businesses with designing, implementing, and managing ESPPs. Their team of advisors can provide guidance on compliance with regulations and tax laws related to ESPPs, as well as assist with ongoing plan administration, including communication and education for employees. By partnering with GEO Finance, businesses can ensure that their ESPP is effectively structured and managed, providing a valuable benefit to employees while meeting the company’s goals for employee retention and engagement.