The document discusses compensation plans for employees called Employee Stock Purchase Plans (ESPPs). ESPPs allow employees to purchase company stock at a discounted price, typically 15% off the lower of the stock price at the beginning or end of the offering period, which is usually 6 months. This provides an incentive for employees to contribute to the company's success and become owners.
The plans are usually funded through employee payroll deductions. Full-time employees must be allowed to participate if the plan is an ESPP under Section 423 of the Internal Revenue Code. Many companies also allow part-time employees to join. These plans generally buy shares for employees at a 15% discount every three or six months. Employees also benefit from a managed purchase