FMN Accounting

FMN - 2021/July, Seg 1 - Employee Stock Purchase Plans - Why Offer One?

Employee stock purchase plans, often known as ESPPs, are programs that enable employees to purchase company stock via elective payroll deductions. Typically, those deductions will accrue over a set period of time, often six months. At the end of that period, the accumulated money is then used to buy stock and a new six-month period starts. ESPPs are a great incentive for employees, but how are they different from any other kind of equity compensation like options or restricted stock? David Outlaw, Director of Valuation and HR Advisory Services at Equity Methods, provides us with details on the different types of ESPPs, reasons companies offer them, common structures and tax qualifications.

Learning Objectives:

  • Understand the distinct differences of ESPPs vs. other stock compensation plans and restricted stock;
  • Identify the different design levers of ESPPs and the ways they differ;
  • Recognize the accounting treatment of ESPPs based on their features; and
  • Understand the remeasurement triggers and common modification drivers.

Prerequisites/Advanced Preparation:

Work experience in financial reporting or accounting, or an introductory course in accounting.

Speaker / Author:

David Outlaw, Director of Valuation and HR Advisory Services at Equity Methods.


Price (USD)

Standard: $69.90


Course Code : FMN1404-FM

Release Date : 07/09/2021
Expire Date : 02/14/2023
Credits :
CPE 2.00

Length : 1hr 40min
Course Level : Update
Course Type : QAS Self-Study
Passing Grade : 70%
Format Type : eLearning
Mobile Compatible
Field Of Study : Accounting

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