An employee stock ownership plan, commonly known as an ESOP, is a retirement plan that is somewhat similar to a 401(k). However, an ESOP is usually company-funded with stock from the employer. Although ESOPs have been in use for years, misconceptions exist as to how an ESOP works. Forming an ESOP The employer company sets the ESOP in motion by creating an employee stock ownership trust (ESOT), which is sometimes Read More
Three Reasons to Offer an ESOP to Your Employees
As the employment landscape changes, employers may search for benefit options that provide value to their employees and their business. One possibility that is sometimes overlooked is the employee stock ownership plan or ESOP. Similar to a profit sharing plan, an ESOP invests in the stock of the employer thereby creating a situation where the employer and employees share ownership of the business. Since ESOPs offer Read More