What is a Colleague Stock Purchase Plan?
A colleague stock purchase plan (CSPP) – also sometimes referred to as an Employee Stock Purchase Plan (ESPP) – is an exclusive company benefit that allows participating colleagues to purchase company stock at a discounted price.
Starting in June, Greif colleagues can purchase Greif (GEF) Class A Common stock at a 15% discount.
Learn more about the CSPP program, why Greif is offering it, and how you can become an owner of the company.
Be an Owner
The CSPP is the easiest and most cost-effective way for you to purchase shares in Greif. As an ‘owner’ you have a greater stake in the success of the company. This helps Greif attract and retain engaged colleagues. It is also another way for you to build wealth and achieve your personal financial goals.
Expand Your Benefits
Many companies offer benefits to attract and retain talent. As the world changes, it is important that Greif changes with it. That means adding new benefits for our colleagues. Like healthcare and retirement savings, the CSPP is not mandatory, but it is an exclusive company benefit designed to reward you for your work and commitment to Greif.
Share in the Success
The CSPP can be a fantastic way for you to build wealth. By purchasing stock at a 15% discount, you can yield an immediate return of 17.6%.
Example: Greif shares are trading at $100 per share. Through the CSPP, colleagues can buy stock at $85 per share. If you were to sell those shares for $100 you would make $15 per share which is equal to a 17.6% return on the initial $85 investment.
The better the company performs, the faster your investment grows!
*Investments through the CSPP are not guaranteed and risks should be reviewed prior to participating.
The Greif CSPP
- Currently only available in the U.S.
- Open to colleagues with 3 months of service
- Open Enrollment is every June and December
- Participation is voluntary
- Administered through Fidelity Investments
- Stock purchases will be through automatic payroll deductions
- You can contribute between 1% – 10% of your paycheck
- Purchases are capped at $25,000/ year in stock value
- Stock purchases take place twice per year at the end of the semi-annual cycle
Colleague Stock Purchase Plan (CSPP) FAQs
CSPP is an equity compensation plan that allows colleagues to use after-tax payroll deductions to purchase Greif stock at a discount of 15%.
The price of Greif stock purchased through the CSPP is a 15% discount on the lower of the Fair Market Value (FMV) on the first trading day of the offering period or the last trading day of the offering period.
There are two purchase periods each year, operating from July 1 to December 31 and January 1 to June 30.
All active non-contract colleagues employed by Greif in the United States, including those working part-time, are eligible to participate.
You can enroll in the CSPP during open enrollment after three months of continuous employment with Greif. You are eligible to enroll for the June open enrollment period if hired on or before March 31. The December open enrollment period eligibility includes those hired on or before September 30.
There are two month-long enrollment periods every year during June and December.
Enrollment automatically carries over from one purchase cycle to the next. If you wish to discontinue participating in the Plan, this can be done through your Fidelity account.
You will be required to wait until the following enrollment period to participate in the Plan.
If you are eligible and the enrollment window is open, you will see Enroll next to Greif when you log in to Fidelity NetBenefits. You will be prompted to open a Fidelity account if you do not already have one. This is the account where your purchased shares will be deposited. To finish enrolling, simply choose an amount to contribute and then agree to the terms. For more help enrolling in your CSPP, please review this guide.
You may elect to have a maximum of 10% and a minimum of 1% of your eligible earnings withheld each pay period. Under federal tax rules, you cannot purchase more than $25,000 worth of stock in any calendar year. The grant price or stock price on the first day of the offering period is used to determine the $25,000 limit.
Once the shares are in your Fidelity account, there is no holding period, and you can sell the shares at any time. However, to get a more favorable tax treatment, you must hold the shares purchased under a Section 423 plan at least one year after the purchase date and two years after the grant date.
Once you elect your withholding percentage during then open enrollment period, it cannot be changed until the next open enrollment period unless you are fully withdrawing from the purchase cycle.
Colleagues can withdraw anytime during the first five months of each offering period by filling out the required notification form. The form is available by logging into your Fidelity account. Due to process timing, payroll deductions may continue for 1 – 2 weeks after the form is submitted. You can elect to have your accumulated payroll deductions refunded to you or used to purchase shares at the end of the purchase period. If your employment ends with Greif for any reason, your purchase right immediately terminates, and all collected payroll deductions are promptly refunded.
Interest is not paid to colleagues at any time for refunded payroll withholdings.
The purchase date will be the last U.S. business day of the purchase period.
Your shares will be deposited as soon as administratively feasible following the purchase date. You will receive a notification from Fidelity once your shares are in your Fidelity account.
All payroll deductions are used by way of purchasing fractional shares. For example, if you have $950 available and each discounted share price is $100, you will receive 9.5 shares.
The stock price is available on Inside Greif, or you can visit Fidelity.com. Stock prices of publicly traded shares can also be found on many financial websites.
For general questions about the CSPP or the enrollment process, call Fidelity Stock Plan Services at 800-544-9354.
Purchasing Company stock through CSPP uses post-tax income, while 401k investments are made using pre-tax income.
If you sell your shares, the gain or loss from the sale will be reported on Form 1099 by Fidelity. Taxes on sold shares are not withheld through payroll and thus, will not be on your W-2. Fidelity does not withhold taxes on sold shares and is therefore, the colleague’s responsibility. Dividend income is reported on Form 1099 by Fidelity and will not impact income or taxes on your W-2. Fidelity does not withhold dividend income taxes and is therefore, the colleague’s responsibility.
Information can be found online by entering ESPP or employee stock purchase plan in your search engine. Included in the bullet points are two resources you may find helpful. Greif does not provide legal or tax advice. Consult an attorney or tax professional regarding any specific legal or tax situation.