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ESOP Design

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ESOP Guidelines
ESOP Guidelines ESOP Guidelines were created to streamline the design of employee stock ownership plans (ESOPs). ESOPs provide a company’s workforce with an ownership interest in the company. ESOP Guidelines for setting up ESOPs ESOP guidelines start with determining the company’s value, since the ESOP cannot pay more than fair market value for the stock... Read More


Do all employees have to participate in the ESOP?
No. However, in order to satisfy IRS nondiscrimination guidelines, the ESOP must cover a substantial percentage of non-highly compensated employees who have attained age 21 and completed a year of service. For this reason, ESOPs established by smaller companies usually cover all employees who have satisfied these minimum age and service requirements. SES Advisors Plan... Read More


How do I set up an ESOP?
The first step in the process is determining the company’s value, since the ESOP cannot pay more than fair market value for the stock it purchases. Both the Internal Revenue Service (IRS) and the US Department of Labor (DOL) have issued guidelines governing the valuation of company stock in ESOP transactions. The next step is... Read More


In what kinds of privately held companies do ESOPs work best?
ESOPs operate successfully in a broad range of companies large and small, public and private. The ideal private company candidate will meet most of the following criteria: The company has strong cash flow and a history of increasing sales and profits. The company has consistently been in a high federal income tax bracket. The company... Read More


ESOPs for Mission-Driven Businesses
ESOPs for Mission-Driven Businesses This webinar addresses how employee ownership fits into a company’s mission. Learn how to preserve your wealth AND your values through the liquidity process. Presented by James G. Steiker, Chairman & CEO – SES Advisors, Inc. Read More


Internal or External Ownership Transition - What's Your Final Answer?
Internal or External Ownership Transition – What’s Your Final Answer? Of the more than 12 million privately owned businesses in the U.S., 70% will be changing hands in the next 10-15 years. Most of the owners of these companies will not have spent time planning for their retirements, much less having planned for how they... Read More


Transitioning Your Business - Do You Have a Plan?
Transitioning Your Business – Do You Have a Plan? Of the more than 12 million privately owned businesses in the U.S., 70% will be changing hands in the next 10-15 years. Most of the owners of these companies will not have spent time planning for their retirements, much less having planned for how they will... Read More


Crafting a Business Owned by Its Workers
Crafting a Business Owned by Its Workers This article shares the story of how and why Greensaw Design & Build L.L.C. became an ESOP company. Published May 23, 2011 in The Philadelphia Inquirer Is an ESOP right for your company? Use our ESOP self-assessment tool to find out. Explore various Ownership Transition Options or replay our Introduction... Read More


The ESOP Blindside And How to Protect It
The ESOP Blindside And How to Protect It This article, which quotes Jim Steiker, addresses the risk of disability among key owner-employees. Published February 4, 2011 in Life Insurance Selling Is an ESOP right for your company? Use our ESOP self-assessment tool to find out. Explore various Ownership Transition Options or replay our Introduction to ESOPs webinar. If... Read More


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of exploring and installing an ESOP, please contact us.
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