Employee Stock Purchase Plans (ESPP)
Employee Stock Purchase Plan (ESPP)
The CVS Health Employee Stock Purchase Plan (ESPP) offers you an opportunity for an ownership stake in the company you work so hard to make successful. It’s a valuable way to save for your future and reach your financial goals through convenient payroll deductions.
How it works
The ESPP allows you to purchase CVS Health common stock at a guaranteed discount with no broker fees. This is done by giving you a 10% discount on the lower of the stock price (fair market value) on the first or last business day of the offering period.
You are eligible to participate at the beginning of an offering period if you have been continuously employed by CVS Health or any designated subsidiary for 90 days (and are actively employed during the two months before the beginning of the offering period). You will receive enrollment materials prior to the start of the offering period in which you are eligible to participate.
The ESPP has two six-month offering periods: Jan. 1 − June 30 and July 1 − Dec. 31. An offering period is a six-month period of time when payroll deductions are accumulated. At the end of the offering period, your accumulated deductions are used to purchase CVS Health stock at a 10% discounted price. For example, if the stock price is $80.00 on July 1 and $90.00 on December 31, the purchase price you pay is $72.00 which reflects the 10% discount of the lower of the two stock prices.
Your ESPP contributions are deducted from your paycheck on an after-tax basis. You may elect to contribute a whole percentage between 1% and 15% of your eligible compensation, per pay period. You are limited to the lesser of 10,000 shares per offering or $22,500 of pay annually to buy $25,000 worth of stock.
After shares are purchased, you may sell your shares at any time. You can transfer your shares once they have been in your ESPP account for at least 24 months from the start of the offering period in which you purchased them.
Once you become eligible for the ESPP, you will be notified when an enrollment period opens:
Offering Period | Enrollment Window |
|---|---|
January 1st - June 30th | November 15th - December 14th |
July 1st - December 31st | May 15th - June 14th |
Your payroll deductions will begin with your first paycheck following the start of the offering period.
After you are notified of the upcoming enrollment period, you will need to:
If you are enrolling for the first time: Decide your contribution percentage for the upcoming offering period
If you are already contributing to the ESPP: Decide if you want to increase, decrease or withdraw your contribution amount for the upcoming offering period
Note: Your contribution amount carries forward for future offering periods until you change it or until your employment with CVS Health or any designated subsidiary ends.
To Enroll in the ESPP
Log on via the links available on colleaguezone.cvs.com:
Stock plan account already activated? Go to MyAccount > Plan Elections
Stock plan account not yet activated? Go to Enroll > Modify your ESPP contribution.
Or
Log on directly at E*TRADE
Stock plan account already activated? Go to etrade.com and select MyAccount > Plan Elections
Stock plan account not yet activated? Go to etrade.com/enroll and follow the steps provided.
There are no commission and account fees when shares are purchased on your behalf under the ESPP. You are responsible for paying standard commissions and handling fees if you sell shares.
