Offers online investment tools, services and trading platforms for retail options investors.
www.optionsXpress.com
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Provides comprehensive compensation and human resource consulting services including salary administration, and performance management.
Executive | Sales | Performance | Core Services
compensationresources.com
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Chuck Hughes Official Site. $10,000 Minimum. Fully Guaranteed.
www.MVPAdvisory.com
Superior options trading technology from industry leading optionsXpress
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Trade free for 30 days + get $100. $9.99 per trade. Open account now.
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100 Commission-Free Option Trades Apply Now at E*TRADE Securities
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123R Calculations With Web Demo We Can Do What Your Auditor Can't
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How To Turn 3 Little Secrets Into An Options Trading Money Machine.
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Conservative Options Strategy. 30 Day Free Trial + Free Report.
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Brokerage, financial management, options trading services, quotes, investing, financial consulting and financial news
4options.4anything.com
Provides comprehensive compensation and human resource consulting services including salary administration, and performance management.
Executive | Sales | Performance | Core Services
compensationresources.com
Article about married couples and ESOP's, by J. Alex Tarquinio.
www.forbes.com
Article on compensation and benefits in Silicon Valley.
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Article by Carolyn T. Geer, from eCompany Now.
www.magportal.com
Helps maximize employee stock options returns. Using real time, web based tools, site allows you to track options, estimate future values, and learn how to maximize worth.
www.myoptionvalue.com
A discussion of equity incentive plans, such as stock options, that serve as alternatives or complements to an employee stock ownership plan (ESOP).
www.nceo.org
Article- "Stock options are no longer just for high-tech start-ups or top-level employees."
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Offers online investment tools, services and trading platforms for retail options investors.
www.optionsXpress.com
The ESOP Association is the source for information about employee ownership and employee benefit plans which make the employees of a company owners of stock in that company.
www.the-esop-emplowner.org
Article by Sandra Block, USA Today- 2/15/00.
www.usatoday.com
Article on the Worker Economic Opportunity Act, from Wirednews.com.
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Chuck Hughes Official Site. $10,000 Minimum. Fully Guaranteed.
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Guide to Employee Stock Purchase Plans
Employees get stock at a discount; you get more motivated workers- Reward employees without raising their salaries.
- Motivate employees by tying their total compensation to the performance of the company.
- Provide an added perk without greatly affecting your bottom line.
Action Steps
The best contacts and resources to help you get it done
Learn how ESPPs work
An ESPP doesn't provide employees with a 15 percent off coupon for buying stocks. To get the discount, they must have funds deducted from their paychecks.
I recommend:
Read the basics of ESPPs to see whether they'll appeal to your employees before you go through the expense of setting up a plan.
Learn the law
For employees to get the full benefits of an ESPP — namely for purchases of stock by employees to be tax-free — your plan must meet the requirements of Section 423 of the Internal Revenue Code.
I recommend:
Look up the Section 423 requirements to learn what's involved for both you and your employees.
Find an ESPP manager
While ESPP basics are easy to understand, the devil is in the (many) details.
I recommend:
Rather than ask your own accountant to manage an ESPP, consider hiring a professional investment firm that specializes in them, such as Mellon Investor Services, Computershare or Fidelity Investments.
Test your knowledge
Before you pitch an ESPP plan to your employees, make sure you have the lingo down pat so that you can answer their questions.
I recommend:
MyStockOptions.com offers an ESPP quiz that you and your employees can take to test your understanding of this benefit program.
Get employees on board
Despite the 'instant profits' that employees can make on ESPPs, the sign-up rate for such programs is low. A study by Hewitt Associates, a human resources consulting firm, found that only 37 percent of executives participate in their company's ESPP, and the numbers decline with the level of employment: Only 16 percent of administrative employees participate.
I recommend:
Get advice on how to explain the benefits of an ESPP to your workers.
Encourage employees to think long-term
Employees can sell the stocks they purchase through an ESPP immediately for quick profit, but selling quickly may not be the smartest thing they can do.
I recommend:
Explain to your workers that flipping their stocks will give them a quick financial boost, but keep them from earning far more in the years ahead.
Tips & Tactics
Helpful advice for making the most of this Guide- Keep employee expectations reasonable: ESPPs aren't guaranteed to make money in the long term.
- Remind employees of the enrollment period deadlines so potential participants don't miss out.
- Teach employees that they need to hold onto the stock if they want to avoid certain taxes.
- Consider providing employees with a company-sponsored accountant come tax time to help them handle sales of stock bought under an ESPP.
