Find Your Resource

The Power of Dividends

What Is the ESOP Committee?

Users of this site often ask us what steps they should take to get educated about making a decision about an employee ownership plan. This article outlines the basic steps we recommend.

This concise tables compares four major forms of employee ownership in the United States on sixteen criteria, such as typical use, tax treatment, governance, cost, and employee benefit.

By Corey Rosen, NCEO Senior Staff Member April 2012

We surveyed ESOP companies starting on April 10 in order to gather data on how they are faring so far in the application process. As of this writing, we have received 164 responses from companies with ESOPs. Of these, 115 or 70% have already submitted a PPP loan application, and most of the rest are actively working with a lender.

Congress has enacted tax incentives for employee stock ownership plans (ESOPs) that provide advantages for not only the sponsoring company but also the employees, the lender to an ESOP, and selling shareholders in closely held companies.

This article was written to answer common questions from managers, rank-and-file ESOP participants in ESOP companies, and others about when and how ESOP participants are paid out.

Challenges and Opportunities for Employee Stock Ownership Plans and Business Preference ProgramsPart 1: Goals and features of preferred-status certifications Updated August 2, 2017

Under Rule 701 of the Securities Act of 1933, companies can offer their own securities as part of written compensation agreements to employees, directors, general partners, trustees, officers, or certain consultants without having to comply with federal securities registration requirements.