An Employee Stock Ownership Plan (ESOP) is an employer provided qualified retirement plan that provides the employees an ownership interest in the company. The employees are provided with stock ownership, often at no up-front cost to the employees and are part of the employees’ retirement compensation for work performed. The shares allocated to the employees can be held in trust until those employees retire or leave the company. The shares are then sold, usually back to the ESOP or the company. The company can often benefit from increased cash flow, tax savings and increased productivity from highly motivated employees.
Due to the many benefits to the company, ESOPs are highly regulated and proper administration is crucial to its success. You will want a highly experienced collaborative team of professionals working with you from start to finish, including ongoing administration and counsel. Eagle & Fein works with a collaborative team that has unmatched combined experience and working knowledge of ESOPs. We will work with you to determine whether an ESOP is appropriate for your company and will provide counsel through every step of the process.