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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…

The 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,…

Understanding 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…

Are 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’…

Employee stock ownership plans (ESOPs) are a terrific benefit to employees and a smart financial tool for many businesses, but they do impact company financial statements in unique ways. In this post, we provide a quick primer on ESOP accounting so you can better understand these impacts. ESOP Accounting Authority and Background Both leveraged and…

ESOP trustees are people or organizations that are charged with managing the employee stock ownership plan on behalf of the plan participants. The Employee Retirement Income Security Act of 1974 (ERISA) requires all ESOPs to have a trustee to manage the plan assets. These trustees can be internal to the organization with the ESOP but…

ESOPs and 401ks can be valuable retirement security account options—both for employers and their teams. However, it can be tough to decide which account is best for your organization’s needs. So, let’s look at some of the differences between these two retirement vehicles so that you can decide which program best for your organization.  …

Ever since the establishment of the first ESOP in 1956, employee ownership has become a valuable tool for attracting and retaining top-tier talent that is loyal and vested in the success of the companies that hire them. In fact, many companies offer ESOPs in conjunction with a secondary retirement plan, such as a 401k. Offering retirement benefits such…

Limited liability companies (LLCs) are a relatively recent form of business organization, but one that has become increasingly popular because of their simplicity and flexibility. In contrast with corporations, which have shareholders, the owners of LLCs are called members, and the unit of ownership is not stock but “membership interests.” The maximum number of members…

Infographic by National Center for Employee Ownership (NCEO) from ESOPs in the U.S.