Employee Stock Purchase Plans: A Powerful Compensation Tool Worth a Closer Look

ARTICLE | May 19, 2026

For incorporated businesses looking to strengthen their compensation and benefits packages, an Employee Stock Purchase Plan (ESPP) can be a compelling option. With a recent survey showing that 76% of business leaders anticipate increased ESPP participation this year, interest in these plans is clearly on the rise. When structured correctly under Section 423 of the Internal Revenue Code, a qualified ESPP can reinforce a culture of ownership, support recruitment, and improve employee retention. However, these plans come with complex legal, tax, and administrative requirements that demand careful consideration. At Vasquez + Company LLP, we can help you weigh the benefits and navigate the details.

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