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Home » Your Guide To Hubspot’s ESPP: Everything You Need To Know

Your Guide To Hubspot’s ESPP: Everything You Need To Know

If you work at Hubspot, you may be eligible to enroll in the employee stock purchase plan (ESPP). To help you make the most of this opportunity, we’ve put together a comprehensive guide to all the ins and outs of this program, from how it works to how you enroll.

If you’d like to learn more about how ESPPs work in general, be sure to read our blog about an overview of employee stock purchase plans.

Here’s a quick rundown of how Hubspot’s ESPP works.

  • You can buy Hubspot stock at a 15% discount.
  • You can enroll twice a year – November 15th and May 15th
  • You can contribute up to 15% of your salary with a maximum of $21,250 per year.

Should You Participate In Hubspot’s ESPP?

When you enroll in Hubspot’s ESPP, you have the opportunity to purchase shares of your company stock at a discounted price through automatic payroll deductions.

The benefits of participating in an ESPP are clear – you can make gains and build wealth. In fact, Hubspot employees can gain $3,750 or even more annually through their ESPP.

Hubspot’s ESPP Discount

Hubspot offers employees an opportunity to buy Hubspot stock at a 15% discount.

Hubspot’s ESPP Enrollment Period

You can enroll in Hubspot’s ESPP twice a year, once in the spring and once in the fall. You can enroll by the following dates:

  • May 15th
  • Nov 15th

Hubspot’s ESPP Contribution Limits

The first thing you need to do is decide how much you want to contribute. You can contribute up to 15% of your salary, with a limit of $21,250 per year.

Hubspot’s ESPP Offering Period

The offering period is the time that employees can purchase the stock. Hubspot’s employee stock purchase plan (ESPP) has two six-month offering periods every year. 

When you’re participating in Hubspot’s ESPP, you set aside money from each paycheck from the beginning of a purchase period through the end. At the end of this purchase period, the money that has been set aside is used to purchase company stock at a discount.

If you are interested in Hubspot’s ESPP, here are some key dates to keep in mind. 

The offering periods are Jun 1 – Nov 30 and Dec 1 – May 30.
The stock purchase dates are the last trading day before May 30 and Nov 30

Hubspot’s ESPP Lookback

Hubspot’s ESPP has a lookback provision for calculating the purchase price. A lookback provision is a beneficial feature that will base the purchase price for calculating the discount on the stock price either at the beginning of the offering period or at the end of the purchase period, whichever is lower.

So if Hubspot’s share price increases during the offering period, you pay 85% of Hubspot’s share price on the offering date. In this scenario, the discount from the market price will exceed 15%.

Let’s look at an example:

  • Share price on Jun 1 =$100
  • Share price on Nov 30 = $115
  • Purchase price = $85
  • Gain / share = $30

To explain – the lookback feature would pick the lower of the two prices, which is $100, and then apply the discount of 15%.

This means you would buy shares at $85 ($100 – the 15% discount), However, they would be worth $115. In other words, you would earn $30 for every $85 you put into your ESPP.

In this scenario, someone who contributed $5,500 over just six months would receive shares valued at $7,441…a gain of almost $2,000 in just six months.

Selling Your ESPP Shares

Once Hubspot purchases the shares on your behalf, they will be deposited into your brokerage account. From there, you can do what you want with them…sell immediately (as long as it’s during the open trading windows), hold for a short time, hold for an extended time, etc.

How does Benny help me make the most of Hubspot’s ESPP?

Benny makes it easy to participate in Hubspot’s employee stock purchase plan by giving you cash to match your ESPP paycheck deduction so you can get the benefits of your ESPP without impacting your take-home pay.

For example, if you’re contributing $350 per paycheck to Hubspot’s ESPP, Benny will deposit $350 in your bank account before each paycheck’s pay date.

Use our ESPP calculator to see how much you can earn with Hubspot’s ESPP.