About Basic Plans
Basic Plans can involve either new issues or on-market purchases (usually via a trustee) of shares at their market value. In either case employees are not charged brokerage because a broker is not involved (new issues) or the company meets the brokerage costs. Also, minimum broker purchase obligations generally do not apply because either a broker is not used or the purchases are aggregated by a trustee. While they do offer the opportunity for improving engagement and alignment there is a risk that they may backfire if the share price falls leading to disgruntled employees. This risk aspect is partly addressed in the Global Employees Plan.