Historically, ESOPs were custom written documents produced by lawyers, which had to be submitted to the Internal Revenue Service for approval. These documents could be costly to amend and maintain. With the arrival this summer of IRS pre-approved “checklist driven” ESOP documents (similar to 401(k) ...
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About Kevin Long
ESOPs Can Help Narrow Racial Wealth Gaps
It is highly researched and widely known that too much of the country’s capital wealth is concentrated in the hands of too few. Furthermore, Black Americans face greater systemic barriers to building wealth beyond the need for a decent wage. Employee ownership in companies could, and should, lower ...
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Highlights from NCEO Employee Ownership Conference
Homeschooling at the National ESOP Conference? As they say, you should never let a good crisis go to waste. Teaching and learning at home can be an added strain on employees and business owners. However, a well-executed pivot by the National Center for Employee Ownership (NCEO) in just a matter of ...
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ESOPs Create More Valuable Companies
In this podcast, Kevin Long talks about how participatory management in an Employee Stock Ownership Company can strengthen the company for eventual sale to a third party.
Transcript
If you're thinking about an eventual exit or succession plan for your company, you really should be talking ...
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ESOP Reshuffling – Getting Stock To The “Have Nots”
ESOP reshuffling is a tool you can use to manage your ESOP repurchase obligation and get stock to the so-called ESOP "Have Nots."
TRANSCRIPT
Speaking of benefits, this is Kevin Long. In this episode, we're going to talk about tools you can use to manage your ESOP repurchase obligation and ...
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ESOPs: The Three Types
This article will acquaint you with the utility of the ESOP as both a technique of corporate finance and an employee benefit plan. It is important to note, however, that there are other employee benefit plans that can be used to invest in stock of the employer sponsor. There are profit ...
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ESOP Distributions: Problems To Avoid
Any ESOP attorney or consultant can tell you that ESOP distributions can be the most complex and challenging area of ESOP design and administration. As discussed in detail in our articles Designing And Drafting ESOPs[1], and Avoiding ERISA Liability Issues In ESOP Repurchase Liability Planning[2], ...
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ESOP Succession Planning: Aren’t ESOPs Expensive?
For those considering ESOP succession planning, Kevin Long compares the cost of an ESOP with a conventional third-party sale, and how selling to an ESOP can actually cost much less.
Transcript:
As ESOP attorneys, we hear this question all the time. Aren't ESOPs expensive? Aren't they ...
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ESOP: How It Differs From Other Retirement Plans
ESOPs are retirement plans. As such, ESOPs are required to follow all the basic rules for tax qualification and non-discrimination that other retirement plans such as 401(k)s must follow. As in a 401(k) plan, participants can roll their ESOP distributions over to another qualified plan.
Aside ...
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