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VideoEmployee Stock Ownership Plan (ESOP) Reference Guide
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An ESOP is a qualified retirement plan sponsored by a company, but unlike a 401K, an ESOP must invest primarily in the stock of the company sponsor and an ESOP may borrow money to finance the purchase of company stock.
June 29, 2021
Director, Valuation Services
Partner, Valuation Services
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An employee stock ownership plan (“ESOP”) is a tax-advantaged way to sell a business to the employees of a company. An ESOP allows the employees of a company to be the beneficial (not legal) owners of a company’s equity. Employees receive benefits in retirement from the payout of share benefits earned during their tenure with the company.