Non-Leveraged ESOPs—Funding the ESOP with Cash or Shares

Most descriptions of how an ESOP works focus on the ESOP trust borrowing money to buy shares. That’s a powerful tool, but not the right one for every company. Recently, for instance, one of our conference keynoters, Lars Wulff of Mud Bay, talked about how their fast-growing pet food and supplies chain is contributing cash each year on a discretionary basis to buy shares from Lars and his co-owner (and sister) Marisa Wulff