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Whether you’re a new hire or a 30-year lifelong employee, being an ESOP participant is often more beneficial and more confounding than working at a non-ESOP company.

ESOP transactions vary widely depending on factors such as the size of the company (which ranges from under 100 employees to over 100,000), the percentage of shares the ESOP will acquire (from less than 1% to 100%), whether the transaction involves a loan, and how many people originally owned the company. Most ESOP transactions move through four phases: pre-feasibility, feasibility, design, and the transaction itself.

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This page presents counts and characteristics of ESOPs and other employee stock ownership plans in the U.S., using data made available by the U.S. Department of Labor, Survey of Consumer Finances, and other sources. Page Contents

 

Contents Introduction Employee Stock Ownership Plans (ESOPs) Stock Options Employee Stock Purchase Plans Restricted Stock, Phantom Stock, and Stock Appreciation Rights 401(k) Plans Employee Ownership and Employee Motivation

Research Shows That ESOPs Provide Retirement Benefits that Are Both Much Larger and Much More Equitably Distributed than Most Other Retirement Plans

S Corporations ESOPs Have Exceptional Tax Benefits, But Plans Must Be Designed to Benefit Employees Broadly