Employee stock ownership plans – Offering your staff the ultimate “buy in”
Abstract: With an employee stock ownership plan (ESOP), employee participants literally take part ownership of the business through a retirement savings arrangement. Meanwhile, employers aim to benefit from an extra-motivated workforce, some potential tax breaks and a relatively smooth path to succession planning. This article describes the practical benefits, implementation parameters, tax impact and considerable challenges of these plans. A sidebar serves up some interesting ESOP-related statistics.