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Retirement Plans

Employee Stock Ownership Plan

An Employee Stock Ownership Plan (ESOP) is a qualified, defined contribution employee retirement plan that invests primarily in company stock. Both public and private companies can establish ESOPs. An ESOP’s unique plan provisions and leveraging capabilities require specialized consulting and expertise. Providing stock ownership benefits is a great way to reward your employees with a benefit tied to your company’s performance while affording the company substantial tax benefits.

Retirement Plans

Employee Stock Ownership Plan

An Employee Stock Ownership Plan (ESOP) is a qualified, defined contribution employee retirement plan that invests primarily in company stock. Both public and private companies can establish ESOPs. An ESOP’s unique plan provisions and leveraging capabilities require specialized consulting and expertise. Providing stock ownership benefits is a great way to reward your employees with a benefit tied to your company’s performance while affording the company substantial tax benefits.

Employee Stock Ownership Plans
(ESOP) With Watkins Ross

Many companies consider creating an ESOP during their ownership succession planning. ESOPs can provide a ready market for the stock and allow shareholders with management responsibilities to sell gradually and ease out of the business, while deferring taxation on the gains from the sale of their stock. Establishing an ESOP can create a corporate “ownership” culture, enhancing employee performance, job satisfaction and retention; while preserving the company’s legacy and business continuity.

As a 100% ESOP-owned company ourselves, we understand that comprehensive administration of an ESOP is required if a company intends to take full advantage of the financial opportunities sponsoring an ESOP can offer. From initial feasibility and design services to S-Corp anti-abuse testing and periodic repurchase obligation analysis, we help you maximize the benefits of having an ESOP.

Curious if an ESOP is right for your company? Our ESOP Checklist serves as a general guide to help you determine if your company is a good candidate to sell to an ESOP. Our ESOP Brochure includes additional information regarding ESOP plans and the services we offer.

Contact Watkins Ross if you have questions or would like help determining if you should implement an ESOP.

Financial & Management

Resources

Checklist

Is Your Business A Good Candidate for an ESOP? (PDF)

View All Resources >>

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To start your employee stock ownership plan today or for additional questions regarding your ESOP, please contact: 

 

David Bosch

Consultant