We are frequently asked whether an ESOP is right for a particular business. As a business owner reaches retirement age, the question of how to protect his legacy while exiting the business comes to the fore of his or her mind. On the one hand, an owner can sell his or her business outright. But […]
40 years ago, Employee Stock Ownership Plans (ESOP) were virtually unheard of 4. Today there are approximately 7,000 vibrant companies that have ESOPs in place, benefiting over 13 million employees. While there are many reasons why a private company may set up an ESOP, the decision process to set up an ESOP and actually setting […]
Our friends at the National Center for Employee Ownership (NCEO) recently responded to the query: Are ESOPs too risky of an investment to be a good retirement option for employees as compared to a more traditional retirement plan (like a 401(k))? Critics claim that ESOPs present too much risk. Not only are retirement assets concentrated […]