TL;DR: Salesforce employees can significantly boost their financial health by participating in their Employee Stock Purchase Plan (ESPP). The Salesforce ESPP allows you to buy Salesforce stock at a 15% discount, with enrollment periods twice a year (Nov 30th and May 31st). You can contribute up to 15% of your salary, capped at $21,250 annually. Key benefits include a lookback provision that ensures you get the best price within the offering period, potentially increasing your gains. Using Benny can help you maximize your contributions without affecting your take-home pay, allowing you to earn an average of $3,000 extra annually.
Make More Money from your ESPP with Benny’s New Program
Benny 2.0 helps you manage your Employee Stock Purchase Plan (ESPP) to make you more money without disrupting your take-home pay.
Maximize Your Gains with Salesforce’s ESPP: The Ultimate Guide
If you’re an employee at Salesforce, you have an incredible opportunity to grow your wealth through the Employee Stock Purchase Plan (ESPP). This comprehensive guide will walk you through everything you need to know about Salesforce’s ESPP, from how it works to how you can make the most of it. Whether you’re new to ESPPs or looking to optimize your participation, this guide is designed to help you maximize your gains.
Understanding Salesforce’s ESPP
The Salesforce ESPP allows employees to purchase company stock at a 15% discount. This is a significant advantage, as it offers an immediate return on investment just by participating. Here are the key details:
- Discount: 15% off the market price of Salesforce stock.
- Enrollment Periods: Twice a year – November 30th and May 31st.
- Contribution Limits: Up to 15% of your salary, with a maximum of $21,250 per year.
Why Participate in Salesforce’s ESPP?
Participating in Salesforce’s ESPP can significantly boost your financial health. By purchasing shares at a discount, employees can realize gains that contribute to long-term wealth building. For instance, it’s not uncommon for Salesforce employees to earn upwards of $3,750 annually through their ESPP.
Key Features of Salesforce’s ESPP
1. Enrollment Periods
Salesforce offers two enrollment periods each year, providing flexibility for employees to join the ESPP:
- November 30th
- May 31st
2. Contribution Limits
Decide how much you want to contribute based on your financial situation. You can allocate up to 15% of your salary, with the annual contribution capped at $21,250.
3. Offering Periods
Salesforce’s ESPP has two six-month offering periods each year:
- December 15th – June 14th
- June 15th – December 14th
During these periods, contributions are deducted from your paycheck and used to purchase Salesforce stock at the end of each period.
The Lookback Provision: A Major Advantage
One of the standout features of Salesforce’s ESPP is the lookback provision. This feature allows the purchase price to be based on the stock price at the beginning or the end of the offering period, whichever is lower. This can result in a purchase price that is significantly below the market value at the time of purchase, enhancing your gains.
Example Scenario:
- Share price on December 15: $100
- Share price on June 14: $115
- Purchase price with lookback: $85 (85% of $100)
In this example, you would buy shares at $85 that are worth $115, netting a gain of $30 per share. If you contributed $5,500 over six months, you would receive shares valued at $7,441, representing a gain of $1,941 in just half a year.
Selling Your ESPP Shares
Once the shares are purchased on your behalf, they are deposited into your brokerage account. You can choose to:
- Sell immediately during open trading windows.
- Hold for a short period.
- Keep them as a long-term investment.
Enhance Your ESPP Strategy with Benny
Benny provides funding and management solutions to help you maximize your ESPP without impacting your take-home pay. By using Benny, you can put other people’s money to work for you, ensuring that you can fully capitalize on your ESPP benefits.
Hundreds of employees, including those at Salesforce, have already benefited from using Benny to boost their annual ESPP earnings by an average of $3,000. With Benny, you can max out your ESPP contributions without sacrificing your regular income.
Real Experiences with Benny from Salesforce Employees
Many Salesforce employees have leveraged Benny to maximize their ESPP benefits. Here’s what Murray, a Salesforce employee and Benny user, has to say:
Conclusion
Salesforce’s ESPP is a powerful tool for building wealth, offering substantial benefits through discounted stock purchases and the advantageous lookback provision. By understanding the details and strategically participating in the program, you can significantly enhance your financial future. Leverage tools like Benny to optimize your contributions and maximize your gains, ensuring you make the most of what Salesforce’s ESPP has to offer.
Ready to start maximizing your ESPP benefits? Talk to a Benny ESPP expert today!
*Benny is an independent party that partners directly with employees and does not have a relationship with Salesforce. This offer has not been endorsed or approved by Salesforce.
Make More Money from your ESPP with Benny’s New Program
Benny 2.0 automatically manages your Employee Stock Purchase Plan (ESPP) to make you more money without disrupting your take-home pay.
What is an ESPP?
An Employee Stock Purchase Plan (ESPP) allows employees to buy company stock at a discounted price, usually through payroll deductions. This means you set a % or $ amount and each and every paycheck, a portion of your paycheck is set aside to purchase company stock at certain increments (most often 6 months but each company can do theirs differently). For more insights, visit our overview of ESPPs.