It's a Defined Contribution Plan that Invests in Employer Securities
Employee stock ownership plans enable closely-held companies to sell equity, at a fair market value, to an employee trust. This is not a stock option program. Instead, an ESOP is an ERISA-authorized benefits plan.
And for a quick study on the basics of leveraged ESOPs, download our concise guide.
How a Leveraged ESOP Works
Who Benefits from Employee Ownership?
Selling shareholders gain liquidity & asset diversification
Can defer capital gains taxes on proceeds
Maintain upside potential & a role in the company
Plan sponsors receive tax deductions on sale amount
Can become income tax-free entities
Get a tool to retain & attract talent
Employees secure a unique retirement benefit (company stock)
Earn real stake in their company
Gain workplace stability & peace of mind
Employee Ownership Questions? We can Help.
When CSG Partners was founded in 2000, we made education a priority. That remains central to everything we do. So, if you have questions about selling to an employee stock ownership plan, or how to prepare for a transaction, or operating as an employee owned company, you've come to the right place. You'll find answers below and even more on our ESOP Resources page.