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Equity Compensation 101
By Gary T. Moyer, April 11, 2000
Stock Purchase Plan
- Employees get a 15% discount tax-free
- Allow rank and file employees to feel they have a stake in the Company
- Popular with start-up companies who have just gone public (high expectations, generates cash to Company)
- Virtually all employees must be covered
- Stock purchases are limited to $25,000 worth of stock (based on fair market value at time of grant)
- 5% or more shareholder cannot participate
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