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  • jackdnls76 jackdnls76 Dec 4, 2005 9:02 AM Flag

    Accomplia

    The truth is, it's really a good deal for the company.....and a bad deal for the employee......
    Unless you are at the director level and above where the company gives you stock at no cost to you, I would advise against participating in the employee stock purchase plan that the company is offering.
    Now if you work for the company and want to purchase their stock I would advise you to do it threw your 401K plan, that way you are not bound to hold it for 60 months as you can sell it at any time.
    I have talked with five different financial planners about the employee stock purchase plan that Sanofi-Aventis is offering and they all agree that it is NOT a good deal for the employee but rather for the company.
    They stated that holding a stock for 5 years without being able to sell it was just taking on too much risk for the employee.
    The financial planner's mentioned to me that a lot of their clients that have employee stock purchase plans where they work at are set up as follows, Example.... where the company purchase's x amount of share for the employee and the company tells the employee if you work for us for 10 years you will be given x amount of stock in which 5 years you will receive half of x amount and 10 percent of x amount each year their after.
    Which is really a better deal ....win/win for both the company and the employee because it doesn't cost the employee a dime and their is no risk.
    And on the other hand is it good deal for the company because their is now one more reason for the employee to stay with the company and because the employee now has a vested interested in the company to see it do well.
    The way I see it the majority of the employee's under the director level will not be able to own shares of the company because they just don't have the extra money to spend to participate.
    It would be interesting though to see how many employee's from the director's level to the CEO would participate "in this employee stock purchase plan" if the company wasn't already giving them company stock.
    I bet the majority of the employees between those levels wouldn't participate either.....and it's not because they don't have the money!
    But because their financial advisers would tell them what I was told by mine.

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    • "Unless you are at the director level and above where the company gives you stock at no cost to you, I would advise against participating in the employee stock purchase plan that the company is offering.
      Now if you work for the company and want to purchase their stock I would advise you to do it threw your 401K plan, that way you are not bound to hold it for 60 months as you can sell it at any time."

      It is being offered at 20% disocunt to market. And there are loopholes in the plan where you can sell it at any time. For instance, you can sell it at a change of life event (sinmilar to provision allowing changes in benefits outside of open enrollment). Another even is purchasing a home.

 
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