The Many Benefits of Setting Up an Utah Company Employee Stock Purchase Plan

by | Jun 17, 2020 | Financial Services


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Many companies today are looking for great ways to incentivize their employees. There are always some essential benefits that companies try to offer to bring about better profits and productivity by employees. The use of bonuses, 401 K contributions, and awards are often some of the primary gifts’ companies try to use to ramp up company productivity levels.

Stock Options

One of the other bonuses that have been used by many of the country’s top companies are giving employees company stock as bonuses. The use of stock as a bonus serves two purposes. They help the employee feel appreciated with a gift of monetary value and encourages employees to work to ensure the company is profitable, so their stocks grow in value.

Setting up an Employee Stock Purchase Plan for companies that have public stock, giving each employee a few stocks as a gift is always a wise bonus offering. However, beyond giving employees a few shares, setting up a more defined employee stock purchase plan can offer a significant boost to employee company participation. This means they can invest in the company directly out of their own funds. This is a wise option for employers to create and allows employees to buy the stock at a discount, which can significantly further enhance their vested interest in the company’s success. The more stocks employees own in a company, the more invested they become.

Companies who are interested in offering this should create a well-defined employee stock purchase plan that streamlines the process for their employees. Companies looking for the best way to do this can get excellent professional services from Colonial Stock Transfer Company. You can learn more about their services at

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