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Employee Stock Ownership Plans (ESOP)

An employee stock ownership plan (ESOP) is a qualified retirement plan that is funded primarily with employer stock. Ideal for mid- to large-sized corporations with stock available for purchase.

  • Flexible contribution amounts
  • Option to borrow funds to purchase stock for distribution
  • Suited for key executives and rank-and-file staff

Sponsor Benefits

ESOPs allow participants to become part owner of your company, serving as incentive to keep profits healthy. ESOPs also serve as a method of corporate finance, because the sponsor can borrow money to purchase stock. Plans are especially suited to finance acquisitions and capital projects and to make current debt service 100% tax-deductible.

  • Valued retirement benefit and executive compensation program
  • Vehicle for corporate finance
  • Employee incentive program

Participant Benefits

ESOPs provide employees a sense of ownership and purpose. When used as executive compensation, ESOPs allow your high-value employees to maximize their earnings by deferring their compensation until they retire or leave your organization.

  • Benefits are vested after a specified term
  • Earnings grow tax-free
  • Includes provisions for diversification

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