Employee stock ownership plans

A shared interest in your company’s future

As a business owner, you may want to provide your employees with retirement benefits and a shared stake in your company’s success, while establishing a succession plan for your business.

We’re here to help. As the #1 recordkeeper of employee stock ownership plans (ESOP), we can provide expertise and support you in setting up a plan that offers retirement savings primarily through employer stock and establishes an employee-owned company.¹

Give us a call at 800-952-3343 to find out whether an ESOP could be right for your business, or talk to your financial professional about your options.

What makes an ESOP different?

An ESOP is a retirement benefit. But it’s different than a 401(k) or pension plan.

• It’s an exclusive option for C- and S-corporations.
• Assets are primarily invested in company stock.
• It gives you a flexible way to sell all or part of your business.

For business owners, an ESOP can be a valuable piece of a succession plan. It can facilitate an efficient ownership transfer, letting you leave a legacy when you reach retirement or leave your company. You can exit on your timeline, not an outside buyer’s requirement. 

ESOPs offer unique tax advantages and, often, greater employee satisfaction, motivation, and retention.

Is an ESOP right for your company?

There isn’t one perfect size or type of company for an ESOP. It’s about characteristics.

ESOPs work well for companies with a history of profitability, solid cash flows, and employee-centered cultures.

You often see ESOPs in multi-generational family businesses and other multi-owner companies.

An ESOP can also help a young entrepreneur sell an existing business so they can use the liquidity to fund their next business move.