Charter Communications employees see their stock rise: CHRO Paul Marchand on the company’s innovative new ESPP
In a strategic move that ties employee retention directly to company ownership, Charter Communications recently unveiled an innovative Employee Stock Purchase Plan (ESPP) with a twist: the longer employees stay, the more stock they earn.
The announcement came just ahead of news about Charter’s game-changing merger with Cox Communications in a deal valuing Cox at approximately $34.5 billion, creating an industry powerhouse in mobile and broadband services.
“In my meetings with employees around the country, one of the most frequent topics of conversation is they want the opportunity to own stock and share in Charter’s success,” said Chris Winfrey, president and CEO of Charter Communications, in the company’s announcement of the ESPP.
For Charter executive vp and CHRO Paul Marchand, the ESPP represents the culmination of years of employee feedback gathered through town halls and listening sessions across the country. “We regularly listen to our employees,” Marchand said in an interview with WorkLife. “What we learned was their desire to be with the company long-term and play an ownership role.”
Unlike traditional ESPPs offering simple purchase discounts, Charter’s plan directly rewards loyalty through a match-based system that increases with tenure. Employees can contribute up to 15% of their paycheck toward purchasing Charter stock (capped at $5,000 annually), but the real innovation comes in the matching structure.
For employees with 10 or more years of service, Charter matches four shares for every four purchased — essentially offering a Bogo (buy-one-get-one) deal on company stock. The matched Restricted Stock Units (RSUs) fully vest after three years, creating another retention incentive. “For somebody who works for us for 10 years or longer, if they buy four shares, we match the four shares like a Bogo,” Marchand said. “The response we got when we announced it was off the charts.”
Charter specifically designed the program for employees not currently receiving equity compensation — primarily customer-facing workers like technicians, call center representatives, and retail staff.
“This benefit should really be about that workforce that we go out and meet with regularly,” Marchand said. “They’re the ones grinding it out every day, making sales, supporting service. They’re the ones that tend to have tenure with a company, and ones that we want to increase their tenure.”
The ESPP complements Charter’s already robust benefits package, which includes comprehensive health benefits with no employee premium increases for 12 consecutive years and a market-leading retirement contribution of up to 9% annually. The company also offers education benefits covering 100% of tuition costs for eligible degrees across 300+ participating programs.
“We want you to stay with us longer,” Marchand said about Charter’s philosophy. “What are all the little dials on a radio we can work through to help that offering be much better for you?”
For employees maximizing all available retirement options plus the ESPP, the financial impact can be substantial. Between the 6% 401(k) match, 3% non-elective contribution, and potential ESPP benefits, long-tenured employees could see accelerated asset accumulation.
Charter’s comprehensive approach to employee benefits aligns with broader industry trends toward holistic financial wellness programs. Edward Gottfried, vp of product at Betterment, a 401(k) and employee benefits provider, emphasizes that modern employers must “think beyond traditional retirement offerings with more holistic benefits like 401(k) matches on student loan payments, access to financial advisors, or employer-sponsored or supported emergency funds.”
The ESPP represents Charter’s recognition that employee financial security extends far beyond basic compensation. By combining stock ownership opportunities with its existing benefits ecosystem, Charter is building what Gottfried describes as essential infrastructure for workforce resilience.
That said, he notes that “better benefits are only half the battle.” The success of Charter’s ESPP will likely depend on ongoing employee education and engagement. “Employees need regular education about the benefits available to them and how best to make full use of those benefits,” he said.
Marchand’s emphasis on regular employee listening sessions and town halls suggests Charter understands such an imperative. The company’s 93% 401(k) participation rate indicates it has already mastered the art of benefits communication — a crucial foundation for ESPP success.
“Employers should consider regular programming about financial wellness to create a more supportive workplace and drive increased engagement with their benefits,” Gottfried said. “Ultimately, companies’ investment in financial wellness benefits can build a healthier, more resilient workforce with better job satisfaction and improved rates of employee retention.”
Marchand believes the ESPP will transform company culture more effectively than traditional equity compensation because employees are actively choosing to invest.
“When this worker takes that withdrawal from their biweekly paycheck, that’s a tremendous statement,” he said. “They’re more ‘in’ than anybody else getting it as part of their normal comp plan.”
While setting modest initial participation goals of 5-10%, from a potential pool of 85,000 eligible employees, Marchand is optimistic based on the company’s track record with benefits engagement.
For Charter, the ESPP represents more than just another benefit — it’s a strategic investment in what Gottfried refers to as building “a healthier, more resilient workforce.”
As Marchand puts it: “As we continue to succeed and the stock grows and people are winning, I think that will spread like lightning in a bottle.”