• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Employee Benefits Law Group

Employee Benefits Law Group

Guidance. More than just Legal Advice.

  • What We Do
    • ESOPs
    • Mergers & Acquisitions
    • Governmental Employee Benefits
    • Retirement Plans
    • Equity & Executive Compensation
    • Health & Welfare Plans
  • Who We Are
    • About Us
    • Our Team
    • Hiring Benefits Lawyers
  • Resources
  • News & Events
  • Contact
Show Search
Hide Search
ESOP Blog
Home > Resources > ESOP > What Classes of Stock Can an ESOP Own?

What Classes of Stock Can an ESOP Own?

September 9, 2020 By Employee Benefits Law Group

There are multiple classes of stock that an ESOP can own. In our video, we discuss the different classes of stock.

 

Classes of Stock

The Internal Revenue Code defines employer securities for privately held companies as including common stock if the common stock has the highest combination dividends rights and voting rights of any class of common or preferred stock if the preferred stock is freely convertible into common. Some advisors use a common stock which they call super common even though that’s not defined in the Code section. They use either the convertible preferred stock or the super common stock for the purposes of allowing the corporation to pay a tax deductible dividend to finance an ESOP loan transaction. 

ESOP

About Employee Benefits Law Group

Employee Benefits Law Group is a deep and diverse team of experts working to make your life easier and improve your outcomes in every aspect of employee benefits. Our clients know we listen, probe and understand their challenges and objectives. We ask the questions they didn't know needed to be asked. They count on us to deliver solutions that become part of their company's overall success.

Meet the Team

EDITOR’S NOTE: We did the best we could to make sure the information and advice in this article were current as of the date of posting to the web site. Because the laws and the government’s rules are changing all the time, you should check with us if you are unsure whether this material is still current. Of course, none of our articles are meant to serve as specific legal advice to you. If you would like that, please call us at (916) 357-5660.

Primary Sidebar

Don’t Miss Out! Subscribe

We cover all things employee benefits law.

Privacy Policy

We never share your info.

Recent ESOP Posts

The Truth About S Corporation ESOPs

Who Are the ESOP’s Trustees and How Do I Determine That?

Who Is Legally Responsible for Valuing the ESOP Stock?

Let’s Start a Conversation

Have questions about your current benefit plan? Want to know what your benefit plan options are? Whatever your need, we’re here to help. Fill out a hassle-free request form, and one of our team members will follow up to get you on the path to success.

 

GET IN
TOUCH

circle arrow right

Footer

Our experienced team guides you in all aspects of ESOPs, M&A due diligence, retirement plans, equity / compensation, and health and welfare benefits.
Sacramento Office
916-357-5660
620 Coolidge Drive
Suite 100
Folsom, CA
95630
Los Angeles Office
310-571-8896
10880 Wilshire Blvd
Suite 1101
Los Angeles, CA
90024
San Jose Office
408-467-3860
2033 Gateway Place
Suite 500
San Jose, CA
95110
Contact Us
    • Facebook
    • Twitter
    • LinkedIn
    • Email
Back to top arrowBack to top.

Copyright © 2021 Employee Benefits Law Group · Privacy Policy · Disclaimer · Site Design by Delos Inc