Among the many benefits of an employee stock ownership plan (ESOP), stands the undeniable fact of better long term employee and community investment, both financially and emotionally. Multiple studies show that ESOP transactions positively impact the corporate social responsibility (CSR) of a company. ESOP companies have shown to outperform non-ESOP companies in CSR. How ESOP…
Read MoreThe Qualifications and Requirements of an Effective ESOP Trustee Aegis Fiduciary Services An essential step of forming an Employee Stock Ownership Plan (ESOP) is selecting an effective ESOP trustee. Because an ESOP trustee is legally bound by both the DOL and the IRS to act solely in the best interest of the ESOP plan participants,…
Read MoreUnderstanding the process and methodologies of an ESOP Valuation can help your company grasp an essential component to every employee stock ownership plan (ESOP). This ESOP Valuation guide will review the importance of valuation accuracy, the basic ESOP valuation process, and different methodologies used by appraisers or valuation experts. What is an ESOP Valuation: An…
Read MoreAre external trustees a must for your ESOP (Employee Stock Ownership Plan)? The fiduciary regulations and responsibilities of ESOP trustees are extensive. The U.S. Department of Labor keeps a sharp watch on ESOP companies and the ERISA (Employee Retirement Income Security Act) is intricate. With over 65 years of experience working in the ERISA, Aegis’…
Read MoreSuccession planning is one of the most emotional and challenging aspects of running a family business. Family owned business succession planning requires owners to look to the past and the future, be honest with themselves about their successor options, and open all doors of possible communication. Owners must remember to always keep the best interests…
Read MoreEmployee Stock Ownership Plans (ESOPs) and the ESOP transaction process provide numerous corporate finance and tax advantages to businesses. Using the ESOP structure to finance business is not new. Under the Employee Retirement Income Security Act of 1974 (ERISA), ESOPs are referenced specifically as a technique of corporate finance. It turns out that these employee…
Read MoreQuestions about corporate governance in ESOP companies are common among business owners who are exploring this employee benefit plan. The biggest questions revolve around the ESOP’s impact on corporate governance and whether or not forming an ESOP will affect board function and responsibilities in this area. In general, forming an Employee Stock Ownership Plan or…
Read MoreAs a qualified retirement plan, employee stock ownership plans (ESOPs) are required by law to have an ESOP trustee. Selecting an ESOP trustee is a critically important part of establishing and maintaining an ESOP and should be undertaken with care. What is an ESOP Trustee? An ESOP trustee is an objective third-party who has…
Read MoreAlthough Employee Stock Ownership Plans (ESOPs) are often formed to ensure the successful continuation of a business, there are times when an ESOP company is later sold to a third-party. When this occurs, ESOP participants can get nervous, wondering what will happen to their ESOP accounts when a company is sold. What to Know About…
Read MoreEmployee Stock Ownership Plans (ESOP) are best known for providing employees with the opportunity to become part-owners of the company they work for, improving productivity and commitment to the company. Less well-known is the fact that ESOPs are often used as an exit strategy for the owner of the company. There are numerous benefits of…
Read MoreDISCLAIMER: The Articles displayed on this website do not constitute legal advice, nor do they substitute for the advice of qualified professionals. While the Articles displayed on this website are designed to provide information regarding the subject matter covered, we cannot guarantee the accuracy of any statements contained therein. If any legal advice or expert assistance is required, the services of qualified professionals should be sought.
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