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What is Equity Compensation & How It Work?

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Once the restrictions expire, the shares become fully owned by the employee. Employee Stock Purchase Plans (ESPPs): ESPPs allow employees to purchase company stock at a discounted price, often through payroll deductions.

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How To Build An Employee Stock Purchase Plan

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If not, I highly suggest getting started with something simple yet effective, like the employee stock purchase plan or ESPP. An employee stock purchase plan allows employees to buy a company's stock at a discount. The discount is paid for with payroll deductions. Employee Retention - 17%.

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All You Need to Know About Profit-Sharing

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Thus, implementing such a plan results in enhanced employee retention. As the name suggests, it is a combination of both the above two types of plans, giving employees the best of both worlds. It is an excellent way of improving employee retention and attracting new talents as well. To increase employee retention.

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The A to Z Explanation About Phantom Stocks

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In most cases, phantom stock programs are a combination of employee stock options and a compensation program. That makes it an incredibly effective employee retention strategy. However, the payout is tax-deductible by the employer as regular income. An employee does not become the owner of the business.