- * Stock purchased every six months, eligible to sell more or less immediately
* Purchase price is 15% below the minimum of the stock price on the purchase date, or the previous four purchase dates. In other words, purchase price remains "sticky" for two years if the stock price goes up, and resets lower if the stock price goes down.
* Can contribute up to 15% of salary + bonus, up to $25/year maximum
- * Stock purchased every six months, but must hold the stock for six months after purchase
* Purchase price is 15% below the minimum of the stock price on the purchase date, or the previous purchase date six months ago. No two-year window.
* Can contribute up to 15% of base salary only, up to $25k/year.
The new plan seems quite bad. The lack of a two-year window and the lower maximum contribution (since bonuses are excluded) are unfortunate, but the six month required holding period seems like a show-stopper to me. Instead of a more or less guaranteed 15% minimum return, it's now an opportunity to gamble that the stock price will not be lower six months after purchase. I wouldn't take that bet with any other investment, and the 15% discount doesn't seem like sufficient compensation for assuming this significant risk.
Am I missing anything? If you think such a plan is worth enrolling in, I'd like to hear why.