Employee Stock Purchase Plans

Do non-executive employees have information? Evidence from employee stock purchase plans

Using a novel data set on employee stock purchase plans (ESPPs), we examine whether lower-level employees have information about future firm performance. We find that high ESPP purchases are associated with a lower likelihood of future adverse events (earnings restatements and earnings breaks), and a higher likelihood of favorable events (the firm becoming a takeover target). Further, firms in ...

Reload Employee Stock Option Plans: Incentive Alignment or Rent Extraction

Abstract: A reload option awards a new option for every share tendered to exercise an existing option. We use a sample of 242 firms that adopted reload provisions to investigate claims that firms use reload options to encourage early exercise and increase share ownership (incentive alignment) against the competing claim that reloads transfer wealth from shareholders to managers. We find that CE...

Developing an ownership culture with employee share purchase plans: Evidence from France

Employee-benefit plans, 1975.

Despite the national decline in the number of employed workers in 1975, the number of workers covered lnder most types of employee-benefit plans increased slightly. Contributions and benefit payments underwent the greatest change. Total contributions increased 17 percent and benefit payments rose 14 percent. In part this change can be attributed to inflation, but it also reflects real growth in...

Growth in Employee-Benefit Plans

Employee-benefit plans in recent years have shown striking advances in the number of employees covered and in the amounts expended for contributions and benefits. To what extent have these advances outpaced the growth in the Labor force and the rise in the wage scale? Do they represent a real improvement for the individual worker in the adequacy and scope of the protection provided? This articl...