An employee stock ownership plan (ESOP) gives workers shares of ownership in their employers. Employees receive the value of the shares when they retire or quit.

An ESOP can provide a big boost to your retirement savings, but keep in mind its value is all tied to your company's stock. If your company goes bankrupt, you'll be wiped out, too. For this reason ...

Most CPA firms are steeped in the partner model of ownership, but one of the country’s largest firms recently opted to break with that model by establishing an employee stock ownership plan (ESOP). No ...

Examples of well-known ESOP companies include Penmac, which is 100 percent employee-owned, as well as Publix Super Markets and WinCo Foods, both of which are more than 50 percent employee-owned ...

Section 408 (e) of ERISA permits ESOPs to engage in transactions involving employer stock, provided the transactions meet specific conditions, including the requirement of “adequate consideration.” ...

Steve Mayer, CEO, Burr Pilger Mayer, Inc. When business owners think about succession planning, they often picture selling to a competitor, a private equity firm or their management team. But there’s ...

ESOPs are widespread, with more than 7,000 in the U.S. Operationally, a company sets up a retirement plan trust, similar to a 401 (k) plan), for its employees and annually contributes or allocates ...

5. Liquidity – An ESOP can be structured to meet a variety of liquidity events. For example, depending on the owner’s goals and timeline, the sale of 100% of the company‘s stock to an ESOP may not be ...

Majority ESOP: In a majority ESOP, employees acquire more than 50% ownership of the company, giving them significant control and decision-making power. This type of ESOP is often used for full ...