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Pastimes : Legal proceedings via SI -- Ignore unavailable to you. Want to Upgrade?

To: BrightFuture who wrote (185)	12/18/1998 2:40:00 AM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 242

terke, Payroll deductions will be used to purchase full and/or fractional shares of COMPANY common stock for a participant's account on each pay day throughout the offering period. Okay, now we're getting somewhere. This very clearly states that they will purchase shares (or fractional shares) on every payday. Nothing unclear about that statement. So you now know when the shares are supposed to be purchased according to your company's own statement. So the only things in dispute are when you actually see the numbers credited to your account, and when you can actually "flip" (sell shortly after purchase) your accumulated stock to date. Let's start with the first problem. It may take your company some time to reflect your numbers into your ESPP account depending on how they actually acquire the stock that will eventually be credited to you. It is likely that they may be making (ongoing) purchases in the open market, and if so, they will purchase only when it is advantageous for them to do so. In other words, they may be buying on the dips. If they don't have enough stock in inventory to credit all participants, they delay posting the numbers until sufficient stock is acquired to cover all purchases. Hence the statement: a participant may purchase shares of COMAPNY common stock under the COMPANY ESPP at prices different than those paid by colleagues who are on different pay schedules. Your purchase price is locked in (regardless of when the company actually acquires the stock, and regardless of when they actually credit your ESPP account and regardless of the actual price per share that your company paid for the stock). The purchase price is 85% of the closing share price every payday Friday. Now if your company's stock is even somewhat volatile, then sometimes (ideally) they may make a few bucks on the deal by actually acquiring it for less dollars per share than what you purchase it for. (Remember, your price is locked in.) On the other hand, their cost per share may be more than your purchase price and they'd lose money on the transaction. Ideally they would try to avoid losing money so it is conceivable that they'd delay any open market purchases until the market was more favorable for the company's purchases. There is probably an individual or committee who's assigned to determine when is the ideal time to purchase. And remember also, that the company's purchases are likely an ongoing thing. They don't just sit there and buy what they need. If the price is cheap they buy more than they need and add to inventory, and if the price is expensive they might wait. No guarantees that this is what's happening, but it's likely true. And what would you see looking at your ESPP account? Unexplained delays in crediting your account, which is exactly what you're encountering now. Your second concern, which involves multiple fees for trying to sell off your account is really not their concern and likely is not a priority for them. They're running an Employee Stock Purchase Plan, not an Employee Stock Selling Plan. So if you incur multiple fees in selling because your ESPP account is not current with your paycheck withholdings, frankly I doubt that they care. It is likely that they feel that they're doing the best job possible right now. You probably could raise a stink about the situation, and you may even have a valid bone of contention. But is it worth complaining about if the very act of complaining might reflect negatively on you with your supervisors? If you complain, are you going to look like a troublemaker? Are you going to be left to stand alone (even though fellow employees may have the same complaint)? It's a tough decision for you. KJC