Equity Plans Are a Large (and Misunderstood) Part of Employee Savings

A new study of over 1,900 plan participants in 130 companies by Fidelity Stock Plan Services found that company stock plans are the number two savings vehicle for employees being offered these plans, ranking behind only 401(k) plans. Stock plans, including options, stock purchase plans, restricted stock, and similar plans, account for 17% of their savings allocations, but only half of the respondents could "generally" explain them, and 11% said that they could not explain their employee stock plan "at all."