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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About Kevin Long
ESOP Distributions: Problems to Avoid
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], ESOP sponsors and fiduciaries must be extremely ...
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Aren’t ESOPs Expensive?
We hear this question all the time. Aren't ESOPs expensive? Aren't they complicated? Well, that's actually the wrong question to ask. The right question to ask is this:
How do the costs and details of an ESOP transaction compare to a transaction where you sell your company to a private equity ...
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The Key Differences Between ESOPs and Other Retirement Plans
Employee stock ownership 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. Like a 401(k) plan, ESOPs also let participants roll their distributions over ...
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2 Reasons An ESOP Might Be Right For You
Broadly speaking, employee stock ownership plans (ESOPs) are a great option for companies looking to accomplish one of two goals—succession planning and employee benefits planning. The great thing about an ESOP is that it can often accomplish both of those goals if it’s designed well. Here are some ...
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What Benefits Do ESOPs Have for Sellers?
As we’ve explained before, an employee stock ownership plan (ESOP) is a dynamic and option-rich succession planning tool that can strengthen companies.
What may be less known is the remarkable tax advantages an ESOP offers to a selling shareholder. Chief among these is the deferral of taxes. ...
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Two Truths About Establishing an Equity Compensation Plan That Are Imperative to Its Success
We hear over and over from our clients and referral sources looking for solutions to long-term equity incentive compensation planning "I'd like to compensate my employees in stock to incentivize them and motivate them to help grow the company." This is not just limited to our practice in the Silicon ...
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The Two Main Takeaways From 2017’s ESOP Conferences
We have a dedicated purpose to maintain and continue to develop our position as thought leaders in the ESOP arena to meet the ever changing and evolving needs of our clients. This is not a static area in which we practice. It's very dynamic and subject to change. The only way to stay on top is to ...
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ESOPs Explained
Employee stock ownership plans (ESOPs) can seem confusing, but they are actually very simple and attractive tools for attracting and retaining top talent, and providing flexibility for business owners.
ESOPs are very similar to profit-sharing plans, except that they must be primarily ...
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