More Employees Choose ESSPs Rather Than 401(k)s, Fidelity Finds

More employees are choosing to invest through an Employee Stock Purchase Plan instead of buying company stock through 401(k)s, according to new analysis from Fidelity Investments.

Fidelity found in 2005 41 percent of employees had company stock in 401(k)s, but that’s dropped by nearly half to 23 percent in 2016. In addition, 28 percent of employers offered company stock through a 401(k) in 2016, dropping from 39 percent in 2005.

According to Fidelity, this suggests employees are taking a more balanced approach to how company stock is allocated.