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Perspectives
The ROI of employee stock purchase plans
How companies with ESPPs have outperformed the market
As organizations strive to attract and retain top-tier talent, employees increasingly seek employers that recognize and reward their contributions. One proven strategy is the implementation of an Employee Stock Purchase Plan (ESPP). Deloitte conducted an analysis to compare the performance of S&P 500 companies with and without an ESPP. The findings indicate a consistent trend of long-term outperformance among S&P 500 companies that offer an ESPP.
Key takeaways:
- Companies with an ESPP outperformed those without across a cross-section of metrics, including total shareholder return (TSR), EBITDA, earnings per share (EPS), and revenue growth.
- An analysis of four employer recognition award lists from 2023 revealed that companies with ESPPs won twice as many “best places to work” awards than companies without ESPPs. This suggests that ESPPs may contribute to heightened positive employee sentiment.
- We do not suggest that correlation implies causation, but the findings suggest that ESPPs may contribute to heightened positive employee sentiment and increased motivation, as employees directly benefit from the company’s growth and performance.
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Discover how Deloitte can help your organization craft an effective stock-based compensation program for an increasingly diverse workforce.
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Meridith Fronza |
Ian Dawson |
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Gregory Kopp |
Julie Duda |
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LaRee Golke |
Megan Lazarek |
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