ESOP

An employee stock ownership plan (ESOP) can provide significant benefits to shareholders, management and employees of a privately-owned business. An ESOP: Offer certain tax benefits while providing business owners liquidity, diversification and enhanced retirement benefits. Can facilitate the financing of corporate transactions & provide employees with an ownership interest. GIve employees a direct stake in their company’s financial success & can have tremendous benefits for business owners, employees and the company. ESOPs can be as a means of liquidity, as a succession planning strategy and more. The government provides significant tax incentives for businesses to create ESOPs, and most studies show that these plans outpace 401(k)’s as a source of retirement income for participants and outperform the S&P 500 in year- over-year investment returns. Given those factors, it’s no surprise that the total number of ESOPs and the employees they cover has grown over the last decade.