Resources

All qualified retirement plans are required under ERISA to have two types of fiduciaries. Watch the video to learn more.   Types of Fidicuiaries The types of fiduciaries required for qualified retirement plans are a trustee and an administrator. In the ESOP context, very often the ...
[Read more] about Who Are ESOP Fiduciaries and What Are Their Responsibilities?

Whether employees have a right to vote on the sale of a company actually comes down to the form of the transaction. Learn more in the video.   The Sale Transaction If the sale transaction is a purchase of the stock held in the ESOP, that is actually an investment decision that the ...
[Read more] about When Do Employees Get to Vote on the Sale of the Company?

When an ESOP company is sold, all of the shares are sold or all of the assets of the company are sold. In this video, we discuss who pays the ESOP loan.   The ESOP Loan It's easiest to think of an ESOP loan as essentially a mortgage on the ESOP shares. If the stock is sold, the ...
[Read more] about When an ESOP Company Is Sold, Who Pays the ESOP Loan?

Whether an ESOP can or should participate in earn outs or escrows from transactions depends upon the structure of the transaction and what's prudent. Watch our video to learn more.   Earn Outs & Escrows Many transactions include escrow provisions that hold back certain sums of ...
[Read more] about When an ESOP Company Is Sold, Can the ESOP Participate in Earn Outs or Escrows?

There are a number of reasons why an ESOP may be frozen or terminated. In our video, learn about freezing or terminating an ESOP.   Ending an ESOP Since terminating an ESOP and completely winding up an ESOP trust necessitates buying out all of the shares of the ESOP to create the ...
[Read more] about What Is the Difference Between Freezing an ESOP And Terminating It?

An issuance ESOP uses financing to acquire newly issued shares from the employer sponsor. The shares are allocated to the participants’ accounts as the loan is repaid. Learn more in our video.   Issuance ESOP An issuance ESOP is actually a form of ESOP transaction where the ...
[Read more] about What Is an Issuance ESOP?

A non-leveraged ESOP does not involve borrowed funds to acquire the sponsoring employer’s stock. It is funded by contributions of cash or stock directly from the employer sponsor. Learn more in the video.   Non-leveraged ESOP Non-leveraged ESOP simply refers to an ESOP that does not ...
[Read more] about What Is a Non-leveraged ESOP?

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) ...
[Read more] about Finally! Pre-approved ESOP Plan Documents to Make Your Life Easier

An ESOP may provide a more flexible solution for company owners compared to a traditional company sale. Watch the video to learn more about a leveraged buyout ESOP.   Leveraged Buyout ESOP A leveraged buyout ESOP is a transaction that can take a variety of forms. Simply stated, an ...
[Read more] about What Is a Leveraged Buyout ESOP?