A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Automatic Rollover

A provision in an ESPP with a longer offering period (e.g. 24 months) that has set purchase periods (every six months). If the stock price has decreased on the purchase date, an automatic rollover occurs that cancels the remaining purchase periods in the offering and re-enrolls employees in a new offering based on the lower start-date price. Some companies call this a "restart provision."

Automatic rollover is a feature of what is sometimes informally termed a Cadillac ESPP (for more on that type of ESPP, see an article from the consulting firm Infinite Equity).

The feature is similar in some ways to an automatic reset. By comparison, a reset feature lowers the lookback price, but does not start a new offering period.

Return to list Register Now

Try the new myStockOptions.com Glossary App! Now available for Android and iOS.

Get it on Google Play
The content is provided as an educational resource.
myStockOptions.com shall not be liable for any errors or delays in the content, or any actions taken in reliance thereon.
Copyright © 2000-2022 myStockPlan.com, Inc. U.S. Patent 7,353,200.
Contact editors@mystockoptions.com for licensing information