ESOP Ongoing Trustee Services

Every ESOP requires ongoing administrative management. Aegis Trust Company works with the Company's third-party administrator who provides this service to companies from diverse industries, all across the nation.

Making fiduciary decisions to acquire the stock of the company from its owners.

What Does an Ongoing ESOP Trustee Do?

An ESOP Ongoing Trustee acts as the plan's fiduciary. It has legal ownership of the company stock and must always act in the best interests of the plan participants and beneficiaries. The trustee's job is to protect participants as well as establishing the annual price of the plan sponsor's stock.

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Our Role as an ESOP Ongoing Trustee

As an ongoing ESOP trustee, we manage the annual work of administering an ESOP. As an ongoing ESOP trustee, we monitor company performance, value shares, and oversee stock allocation to participants. Our role is to manage the plan on behalf of the employees, ensuring share prices are fair market value and that all regulations are followed.

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Independent Annual Appraisals

An ESOP must have its stock independently valued every year. Aegis’s experienced fiduciary committee and independent financial advisor review the company’s financial statements and other pertinent information to determine the appropriate value of the ESOP shares. This price is used to allocate new shares to participants and to prepare current participant statements.

Monitoring of Internal Operations

As an ESOP ongoing trustee, we meet with company management to monitor operations and financial performance, every year. We also ensure that all Department of Labor and Employee Retirement Income Security Act (ERISA) requirements are being met, and that plan participants know the value of their shares and account balances.

Oversee Annual Share Distribution

We oversee the ESOP’s annual distribution of shares, in addition to the buyback of shares from participants who retire from the company.

Client Feedback

Read firsthand accounts of how Aegis has transformed businesses and empowered employees through ESOPs

Taylor Johnson

"Aegis is a true partner in our success. Their tailored ESOP solutions have driven our organization's growth and innovation, making our journey into employee ownership truly transformative."

Morgan Smith

“Thanks to Aegis, our transition to an ESOP was seamless. The entire process was expertly managed, and now, as co-owners, our team feels more motivated and connected than ever before.”

Jordan Williams

“Aegis made employee ownership a reality for our small business. Their guidance and support have not only increased our company's value but also our employees' satisfaction and financial security.”

We believe in the transformative power of ESOPs for business owners, employee owners, and society at large.

Committed to
Your Success

As you navigate your company’s ESOP journey, we want to be your trusted partner. Our exclusive focus on ESOPs mean we have a team that’s dedicated solely to the best interests of all your stakeholders.

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Rigorous Compliance

We adhere to all regulatory requirements for ESOPs.

In-House Services

Our team includes experts in every area of ESOP transaction trustee services.

Steadfast Support

Aegis is committed to protecting and guiding ESOPs.

Have Questions?

Dive Deeper

Get all your questions answered on our Frequently Asked Questions page.

What is an ESOP?

An Employee Stock Ownership Plan (ESOP) is an employee benefits program that empowers employees to own a piece of the company they are helping to build. In an ESOP, employees acquire company stock as part of their retirement package, which is often tied to vesting and rewards longevity with the organization. Companies that utilize ESOPs are often more productive and enjoy a positive, collective internal culture. ESOPs are also a great recruiting and retention tool.

How do employees acquire shares in an ESOP?

Employees who participate in a company’s ESOP receive an allocation of shares. When an ESOP is first formed, a trust fund is set up. The fund is comprised of newly issued shares and/or cash to purchase existing shares which, once purchased, go back into the trust. Shares of company stock are allocated to each participant’s individual ESOP retirement plan account every year. Read more on this topic in our comprehensive blog.

Are ESOPs a retirement plan?

Yes, Employee Stock Ownership Plans are a type of retirement plan that empowers employees to own a piece of the company they are helping to build. When participants leave the company or retire, they are able to request a distribution from their account if they have met vesting schedule requirements. ESOP distributions are cash payments based on the current fair market value of the shares in the participant’s account at the time of distribution. The former employee receives cash and the shares are sold back to the ESOP sponsor, going back into the trust fund to be reallocated to remaining participant accounts. Keep reading about this topic in our blog.

Are ESOPs suitable for all types of companies?

While ESOPs are implemented in companies across diverse industries, they may not be suitable for every business. ESOPs are available only to C-Corporations and S-Corporations. They are not recommended for start-ups and small businesses. Furthermore, there are cash flow requirements that must be met, which limits what is available for reinvestment in the company.