My girlfriend enrolled in her company’s ESPP program beginning Jan 1, 2021. They have been withholding 10% of her gross pay as expected. Now that the July 1 payout has arrived with nothing seen by her company, she inquired where she can access her shares. She was told a couple things…
- They have no balance showing for her account as part of the enrollment. They are going to look into this. Ugh.
- When they do find her money, they are going to just refund the entire amount because the company already met their company-wide ESPP disbursement of 100k shares.
No. 1 is ridiculous, but they’ll of course find their error there. But the real question is, Can a company do No. 2??
I have been a participant of my own employer’s ESPP program for 7 years and have never heard of this. It seems unfair and unreasonable to withhold so much income from an employee (which comes with some sacrifice to participate) and then say “Oops, sorry, you don’t get the stock plus expected profit, but here’s your money back”