Frequently Asked Questions

Employee Ownership FAQs

Common questions about employee stock ownership plans (ESOPs), employee ownership trusts (EOTs), and other forms of employee ownership, from the basics to technical topics.

This FAQ is written primarily for business owners, managers, and advisors involved in setting up or running an employee ownership plan. If you're an employee at an ESOP company looking to understand your own benefits and rights, see our articles on Working at an ESOP Company and The Rights of ESOP Participants.

NCEO employee ownership FAQ hero (keyboard)

If an employee has a put option with two 60-day windows one year apart, what price is used for the shares if the employee waits until the second 60-day period to exercise? Can we use the price when the distribution was made or do we have to use the most recent valuation?

Only the most recent valuation can be used.

Link to this FAQ Topic: Distributions & Repurchase