Understanding ESPP - 85k Salary Example

This segment breaks down a numerical example of how Employee Stock Purchase Plans (ESPPs) work in practice. While ESPPs may offer modest financial gains, they remain a valuable benefit—especially at companies that don't provide RSUs.

• Basic Example: With an $85,000 base salary, contributing the maximum 10% ($8,500) into an ESPP with a 15% discount allows purchase of 100 shares at $85/sha