Top Ten List: Reasons to Consider a Nonqualified ESPP

When companies offer a US-style employee stock purchase plan, the predominant practice is to offer a plan that qualifies for preferential tax treatment under Section 423. According to the recent Domestic Stock Plan Administration Survey from the NASPP and Deloitte Consulting, nearly 80% of companies that offer an ESPP do so in the form of a qualified plan. But should they?