2 ms·
What % of employees eligible for ESPP even need the few hundred $ extra per paycheck that they won't max out ESPP? They probably fall into these categories: 1
by mankash666 9y ago
What % of employees eligible for ESPP even need the few hundred $ extra per paycheck that they won't max out ESPP?
They probably fall into these categories:
1> Unplanned financial crisis
2> New hires, typically from college with loans
I'd guess the market isn't big enough
- matmann2001 9y agoI'm thinking there might be more than you think, though you are probably right that the distribution would skew towards younger employees. Even 10% of a paycheck is decent sized chunk to have tied up in ESPP. Especially if you are doing other %-based contributions like 401K/IRA. Especially in areas where housing can cost 25% or more of your monthly earnings.
- mankash666 9y ago@matmann2001 - you'll need to get more numbers to assess the total assessable market (TAM). ESPP eligibility might be a low% of the workforce given that SMBs employ much more than public companies. even among public companies, ESSP is only offered by a double digit % at best. Despite this, if the TAM is convincing, let's chat
- matmann2001 9y agoCNBC article from last year: https://www.cnbc.com/2016/12/14/employee-stock-purchase-plans-are-underutilized.html https://www.cnbc.com/2016/12/14/employee-stock-purchase-plan... Notably, Fidelity alone administers ESPP for 678,000 employees. Fidelity found that only 1/3 of employees with access to ESPP actually use it.