Mercer Study Shows Decline in Broad-Based Options, But ESPPs Largely Unaffected

A 2005 survey of 268 large public companies by Mercer Human Resources shows that only 6% plan to eliminate their ESPPs, and only 15% of the companies with plans plan to change them this year, generally by reducing the look-back period or the discount. Fifty-eight percent of the companies have cut back on options. Of these, 71% (or 38% of the overall sample) are cutting back on option eligibility. The data do not allow an analysis, however, of how many of these plans were providing equity broadly to non-management employees.