BNET Business Dictionary
Business Definition for: ESOP
- employee stock ownership plan
Additional Resources
- Understanding the ESOP Repurchase Obligation
- This article is intended to provide a foundation of basic knowledge concerning the concept of an ESOP's repurchase obligation. Unique to each ESOP company, the repurchase obligation is best understood when studied or discussed from one of the three constituencies found within an ESOP. Empowered with the knowledge of the...
- White papers 2003-01-01
- The ESOP Decision
- In many respects the decision to implement the ESOP may be the most important decision ever made by the business owner next to the founding of the business itself. ESOPs can be, and often are, implemented on a limited basis where a minority block of stock will be sold...
- White papers 2003-01-01
- The Rights Of ESOP Participants
- From the executive summary: ‘To get the tax benefits Employee Stock Ownership Plans ESOPs provide, companies must abide by the rules designed to make sure taxpayers are getting their money's worth. Most of these rules concern responsibilities of ESOP fiduciaries to operate the ESOP for the exclusive benefit of ESOP...
- White papers 2003-01-01
- ESOP Repurchase Obligation Issues in S Corporations
- S corporation status does not directly affect the amount of a company's ESOP repurchase obligations, but most ESOPs in S corporations hold large percentages of company stock. This is because the tax advantages associated with S corporation status vary directly with the percentage of the company's stock owned by the...
- White papers 2003-01-01
- ESOP Distribution and Diversification Rules
- This page was written to answer common questions from managers, rank-and-file ESOP participants in ESOP companies, and others about when and how ESOP participants are paid out. The discussion assumes that the reader knows what an ESOP is, etc.; for basic background information, read our overview of employee ownership. Note...
- White papers 2003-01-01
- A Renewed Look At ESOP Feasibility Planning
- Article discusses that ESOP has been set in stone tablets (or, for our purposes, the legal documents that formally establish the terms of the plan). If you already have an established ESOP, these may be old news to you. But, if you do, and they are not, a moment of...
- White papers 2003-01-01
- Duties Of The ESOP Committee
- From the executive summary: ‘An Employee Stock Option ESOP committee is usually appointed by the board of directors and is delegated the responsibility to oversee day-to-day operations of the ESOP plan. It is often called the ESOP Administration Committee or Plan Administration Committee.' The paper elucidates the responsibilities of the...
- White papers 2003-01-01
- Creating A "Sinking Fund" In An ESOP To Fund Repurchase Obligations
- From the executive summary: ‘One of the ways to fund an Employee Stock Ownership Plan ESOP repurchase obligations is to create a "sinking fund" in the ESOP. This involves making contributions to the ESOP that are greater than what is needed on a current basis for distributions, thereby creating a...
- White papers 2001-12-01
- ESOP Repurchase Obligation Issues In S Corporations
- From the executive summary: ‘When an Employee Stock Ownership Plan ESOP trust is one of the shareholders, the income attributable to its share of the corporation's income is not subject to income tax, but if other shareholders are receiving a distribution, so must the ESOP, because an S corporation can...
- White papers 2000-12-01
- Partial Settlement Announced in United Airlines ESOP ERISA Class Action Lawsuit
- CHICAGO -- Class Plaintiffs and the United Airlines Corporation Employee Stock Ownership Plan ESOP Committee announced today that they have reached a settlement in the class action lawsuit entitled Summers et al v. UAL Corporation ESOP Committee, et al, No. 03 C 1537. Under the settlement agreement, the ESOP Committee's...
- Research articles 2005-08-17
- Willamette Management Associates Guide to ESOP Valuation and Financial Advisory Services.(Brief Article)(Book Review)
- Willamette Management Associates Guide to ESOP Valuation and Financial Advisory Services, edited by Robert E Reilly and Robert R Schweihs (Willamette Management Associates, 2005), describes the practical applications of employer stock option plan ESOP valuation, financing, taxation and transaction structuring. The book is not a ...
- Research articles 2005-12-01
- ESOP Advantages
- American Capital has been involved in more than 40 acquisitions, divestitures, valuations and funding of employee ownership and ESOP companies since its founding in 1986. Most of these transactions have been spin-offs of subsidiaries, divisions and product lines of Fortune 500 companies. Many have been asset purchases, and many have...
- White papers 2003-01-01
- Funding ESOP Repurchase Obligations: A Step-By-Step Planning Approach
- "Planning for the repurchase obligation (also called the ""repurchase liability"") is an important issue for employee stock ownership plan ESOP companies whose stock is not publicly traded. Section 409h(1)B of the Internal Revenue Code of 1986 Code requires that such companies be prepared to buy stock back at the then...
- White papers 2003-01-01
- ESOP Power
- Employee Stock Ownership Plans ESOPs can wield great financial power and benefits when applied properly to real-life needs and concerns within today's corporate environment. ESOP companies are also somewhat more likely to still be in business several years later. Moreover, ESOP companies are substantially more likely to have other retirement-oriented...
- White papers 2003-01-01
- How An Employee Stock Ownership Plan (ESOP) Works
- Employee ownership can be accomplished in a variety of ways. Employees can buy stock directly, be given it as a bonus, can receive stock options, or obtain stock through a profit sharing plan. Some employees become owners through worker cooperatives where everyone has an equal vote. An ESOP is a...
- White papers 2003-01-01
- Thrift exec nets premium from stock sale to ESOP. (Haverfield Corp. chairman Peter Shimrak; employee stock ownership plan)
- Thrift exec nets premium from stock sale to ESOP Peter Shimrak, chairman of Haverfield Corp., received a $43,484 premium over market prices when he sold 31,625 shares of his stock in the company to the Haverfield Corp. Employee Stock Ownership Plan. Jacques...
- Research articles 1991-06-24
- Divestco Inc. Announces Employee Share Ownership Plan ("ESOP").
- CALGARY, ALBERTA, Mar 22, 2004 CCNMatthews via COMTEX Divestco Inc. (TSX-V:"DVT") ("Divestco") announces that it has implemented an ESOP to encourage employees to buy shares of Divestco. Divestco will match each employee's contributions to the ESOP to a maximum of 3% of each employee's...
- Research articles 2004-03-22
- Golden Artist Colors' ESOP makes owners of workers
- COLUMBUS - Golden Artist Colors, Inc. has always advised its staff to "act like owners," and now more than 100 employees no longer have to act. On May 12, the company held its first Employee Stock Ownership Program ESOP allocation. The ESOP trust now holds 38.75 percent of the privately...
- Research articles 2003-05-30
- Lonnie L. Peppler-Moyer, President and Publisher of the Monroe Publishing Company, Elected Chair of The ESOP Association
- To: STATE EDITORS Contact: Amy Gwiazdowski of The ESOP Association, +1-202-293- 2971, amy@esopassociation.org WASHINGTON,May 6 /PRNewswire-USNewswire/ -- Lonnie L. Peppler- Moyer, President and Publisher of the Monroe Publishing Company in Monroe, Michigan, has been elected to serve as Chair of The ESOP Association. The ESOP Association is the national...
- Research articles 2009-05-06
- ESOP Government Contractors Have A Ball
- The Ball Corporation decision by the Armed Services Board of Contract Appeals ASBCA on April 3, 2000 is good news. It constitutes a reaffirmation by the ASBCA of the position it previously espoused in Ralph M. Parsons Co. to the effect that reasonable contributions by cost-plus Government contractors to leveraged...
- White papers 2000-07-01
