ESOP Info For Newer EOs - Part 3

Continuation of The subject. So far lots of good discussion.

Comment #3: "But I cant buy enough shares because I don't have enough cash"

Yes this is an issue and management is working on that. This is one reason the year end contribution % was increased for people who have 10yrs or less. Also a reason why dividends are pushed up (a higher dividend means lower stock price increase which means you can buy more shares with your cash). 

Side Note: So how the system works for a first year person is that they get a "year end contribution" effective 12/31 but that doesn't show up until April. Well, we all get a YE contribution but it is key for first year people as it gives you your first infusion of cash to buy shares. The reason it doesn't show up until April is that in December the number you see is an estimate. They have to close out the books for the year which takes time, and then the final number is known. Also in April the new stock price is announced that is actually the previous years ending stock valuation (12/31). People retire in the previous year, and it takes some time to calculate exactly the number of shares that are available effective January 1. In June they take the cash you have and buy shares allocated to you based on whats available 1/1. Allocation is based on your salary + bonus in proportion to all salaries and bonuses multiplied by the available shares. What can happen is that you might be allocated "x" shares but you don't have enough cash to buy them all, so those excess shares go to the rest of us who have cash. As I noted, management is aware this is a problem and they are working to address it in a couple different ways.