ESOP Blog

Learn the ways stock can be allocated with an ESOP in our video.   Transcript Most often stock is allocated with an ESOP and proportioned to the compensation of the employees that are in the plan. It's also possible, however, to design a formula in an ESOP that allocates stock in rate ...
[Read more] about How Is Stock Allocated Within the ESOP?

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 ...
[Read more] about ESOPs Can Help Narrow Racial Wealth Gaps

In our video, learn more about repurchase liability arising from an ESOP and how repurchase liability is handled to protect the corporation.   Transcript Repurchase liability, the obligation of the corporation to buy back the stock from departing participants, is a corporate finance ...
[Read more] about How Is Repurchase Liability Handled to Protect the Corporation?

If an ESOP stock is not publicly traded, a qualified independent appraiser is used to determine the fair market value. Watch our video to learn how the value is calculated.   Transcript Both the Internal Revenue Code and ERISA require that the ESOP stock value be determined by way of ...
[Read more] about How Is Fair Market Value of the Stock Determined?

In this video, ESOP attorney Kevin Long explains how an ESOP can be used to refinance outstanding debt.   Transcript An ESOP can refinance outstanding debt using an issuance transaction. Briefly put, if there is outstanding debt on the balance sheet, a new loan can be taken from a ...
[Read more] about How Is an ESOP Used to Refinance Outstanding Debt?

One option for a company to raise capital is by using an ESOP. Watch our video to learn more.   Transcript An ESOP can raise capital by creating what we call an issuance transaction. In that transaction, the company or the ESOP borrows money from a bank and purchases new shares from ...
[Read more] about How Is an ESOP Used to Raise Capital?

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 ...
[Read more] about Highlights from NCEO Employee Ownership Conference

An Employee Stock Ownership Plan (ESOP) is a type of employee benefit plan that acquires company stock and holds it in accounts for employees. Learn more about how an ESOP works in our video.   Transcript An ESOP is a qualified retirement plan. This means that contributions are made by ...
[Read more] about How Does an ESOP Work?

There can be a substantial tax advantage to the S corporation ESOP business model and there are anti-abuse rules that apply to all S corporation ESOPs. Watch this video to learn more.   Transcript The anti-abuse rules are what we like to call an ownership concentration percentage ...
[Read more] about How Do the S Corporation Anti-Abuse Rules Work?