The amount of the discount depends on the specific plan but can be around 15% lower than the market price.
[3][4] ESPPs can also be subject to a vesting schedule, or length of time before the stock is available to the employees, which is typically one or two years of service.
[7] The majority of publicly disclosed ESPPs in the United States are tax-qualified plans that follow the rules of Section 423 of the IRC.
[citation needed] In the United States, the participation rate for ESPPs is around 30%.
[3] Many employees do not exercise their stock options for various reasons, including lack of cash flow.