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ESOPs Provide a Variety of Significant Tax Benefits for Companies and Their Owners. ESOP Rules Are Designed to Assure the Plans Benefit Employees Fairly and Broadly

Many companies we encounter have a pretty good idea of what kind of employee ownership plan they want to use, usually based on specific needs and goals. However, sometimes they might be better served by another kind of stock plan.

Hiring the experts to help you manage the creation of an employee ownership plan will cost money, but the right experts will save you the hassle, time, and unwarranted risk of trying to figure this out yourself. Contents

On August 13, 2018, the Main Street Employee Ownership Act (MSEOA) became law when President Trump signed the John S.

There are three traditional ownership succession strategies: sell to an insider, sell to an outsider and "till death do us part." I will discuss each of these traditional options and compare each of them to an ESOP.

For many companies, the route to employee ownership is through a formal employee ownership plan such as an ESOP, 401(k) plan, stock option, or employee stock purchase plan (ESPPs—a regulated stock purchase plan with specific tax benefits).

ESOPs are an extraordinarily effective tool for business ownership transitions as well as creating productive ownership cultures. According to the NCEO's 2015 ESOP transaction survey, 92% of ESOP companies are happy with their ESOP transactions.

A large body of research explores the effects of employee ownership on firms and workers. This page provides a guide to key findings.

Over the years, the NCEO has conducted and reported on research on employee ownership and corporate performance. The research comes to a very definite conclusion: the combination of ownership and participative management is a powerful competitive tool.

Restricted stock and direct stock purchase plans have become increasingly popular as ways to compensate employees. Often used just for key employees, they also can be used more broadly.