A employee stock purchase plan offers compensation tied to the market value of a company’s shares. This type of plan is a nice addition to a retirement savings plan and cannot be offered as a stand-alone product. These plans are established on behalf of the company and administered by a financial institution.
Advantages
| For employers | For employees |
|---|
- Straightforward administration (by Desjardins Insurance)
- A strong and experienced partner
- Increased employee commitment and loyalty to the company
- Attract and retain top talent
| - Contribute to the company’s growth and success
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Contributions
| Employer | Employee |
|---|
- Incentives can be offered through matching employee contributions or discounts
- Contributions and administrative fees are tax-deductible
| - Contributions by payroll deduction
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Details
This plan is associated with a savings plan (RRSP, spousal RRSP, DPSP, EPSP, TFSA, non-registered plan)
| Administration | Investments |
|---|
- Choice of the unitized method or the book entry method
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