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ESOP Articles

ESOPs for Cannabis Companies by Alan Kandel
Posted on Jun 27, 2025 By Alan Kandel & Marshall Custer Employee Stock Ownership Plans (ESOPs) are gaining renewed attention in the cannabis industry as a promisi ... [continue]
Evolving Case Law and Recent Legal Actions Influence Compilation of Boards of Directors of ESOP-Owned Companies by John A. Kober
Posted on Sep 22, 2023 The unique ownership structure of a company owned by an employee stock ownership plan and trust (ESOP) expands the fiduciary duties of the board of ... [continue]
ESOP/Family Succession by Jack Veale
Posted on Aug 03, 2022 Over the next 10 years, over 50% of the privately held, family owned or ESOP  businesses will be changing ownership. Are you one of ... [continue]
Valuation Considerations During Times of Financial Uncertainty by
Posted on Dec 21, 2021 As the country focuses its attention on COVID-19, and with most of the nation under strict “stay-at-home” orders allowing only essentia ... [continue]
Valuation Considerations During Times of Financial Uncertainty by
Posted on Dec 21, 2021 As the country focuses its attention on COVID-19, and with most of the nation under strict “stay-at-home” orders allowing only essentia ... [continue]
Exploring Unique Alternatives to a Traditional ESOP Structure by
Posted on Dec 21, 2021 KSM’s Mark Flinchum and Andy Manchir with the firm’s ESOP Services Group joined the National Center for Employee Ownership (NCEO) ... [continue]
Exploring Unique Alternatives to a Traditional ESOP Structure by
Posted on Dec 21, 2021 KSM’s Mark Flinchum and Andy Manchir with the firm’s ESOP Services Group joined the National Center for Employee Ownership (NCEO) ... [continue]
Is an ESOP the Right Succession Plan for Your Trucking Company? by
Posted on Dec 21, 2021 What will happen to the trucking company that you’ve spent a lifetime building when you retire? Can selling to an ESOP make the transition of ... [continue]
Is an ESOP the Right Succession Plan for Your Trucking Company? by
Posted on Dec 21, 2021 What will happen to the trucking company that you’ve spent a lifetime building when you retire? Can selling to an ESOP make the transition of ... [continue]
How Is the Annual Price of Your ESOP Shares Determined? by
Posted on Dec 21, 2021 You may be fortunate to be employed at one of the 6,500 companies in the U.S. that sponsor an employee stock ownership plan (ESOP). If not, perhaps ... [continue]
How Is the Annual Price of Your ESOP Shares Determined? by
Posted on Dec 21, 2021 You may be fortunate to be employed at one of the 6,500 companies in the U.S. that sponsor an employee stock ownership plan (ESOP). If not, perhaps ... [continue]
Contractors: Have You Considered ESOP as a Succession Plan? by
Posted on Dec 21, 2021 After working hard to build a successful business, you want to see it live on after you hand over the reins to the company. Who knows your business ... [continue]
Contractors: Have You Considered ESOP as a Succession Plan? by
Posted on Dec 21, 2021 After working hard to build a successful business, you want to see it live on after you hand over the reins to the company. Who knows your business ... [continue]
Empowering Government Contractors through Employee Ownership: Revisiting ESOP Benefits by Blake Head
Posted on Dec 15, 2021 Employee Stock Ownership Plans (ESOPs) are the most common and successful employee ownership model in the U.S. and have become a popular alternativ ... [continue]
Incentivizing the Next Generation of Leadership with an ESOP by Blake Head
Posted on Dec 15, 2021 In addition to its well-known structural benefits, an ESOP can be an extremely attractive incentive plan for business owners who have a pool of str ... [continue]
Unlocking Liquidity: Selling Your Business to an ESOP by Blake Head
Posted on Dec 15, 2021 An employee stock ownership plan – better known as an ESOP - can be an attractive and tax efficient alternative for owners of private compani ... [continue]
Why ESOPs Are Becoming More Popular Among Architecture and Engineering Firms by Blake Head
Posted on Dec 15, 2021 Every year, the National Center for Employee Ownership (NCEO) publishes a list of the nation’s 100 largest employee-owned companies. In 2020, ... [continue]
Employee Stock Ownership Plans Gain Traction in the Construction Industry by Blake Head
Posted on Dec 15, 2021 The National Center for Employee Ownership (NCEO) publishes an annual list of the nation’s 100 largest employee-owned companies. Co ... [continue]
The Fallacy of the December 31 Closing for ESOP Transactions by Blake Head
Posted on Dec 15, 2021 While many businesses and their owners wish to close an Employee Stock Ownership Plan (ESOP) transaction by or on December 31, the importance of do ... [continue]
Frequently Asked Questions Related to Employee Stock Ownership Plans (ESOPs) by Blake Head
Posted on Dec 15, 2021 Employee ownership can be an attractive option for owners looking to sell their business while maintaining their legacy and protecting the wellbein ... [continue]
Business transition planning: Putting success in family succession by
Posted on Nov 30, 2020 The significant role that family businesses play in our economy is unmistakable: As of data from 2019, as much as 57% of U.S. GDP is attributed to ... [continue]
The Employee Stock Ownership Plan (ESOP) Maturity Continuum by
Posted on Oct 08, 2019   By Kyle Seymour and Lee Eisenstaedt     There are about 7,000 organizations with Employee Stock Ownership Plans (E ... [continue]
Mergers And Acquisitions: Must There Be A Crisis For Leaders To Act? by
Posted on Oct 03, 2019   "In case of emergency, break glass." You've seen that warning many times. But when it comes to addressing leadership c ... [continue]
Are You as Self-aware as You Think You Are? by
Posted on Oct 03, 2019   Whenever I talk to leaders and managers about self-awareness, someone usually says, "I don't need any of that. I'm alr ... [continue]
COURTS CONTINUE TO RULE ON RETIREMENT PLAN MANDATORY ARBITRATION PROVISIONS by
Posted on Mar 25, 2019 By: Gregory K. Brown and Louis L. Joseph HIGHLIGHTS: • Some retirement plans, including employee stock ownership plans (ESOPs), have ... [continue]
WHAT IS A REPURCHASE OBLIGATION? by Edward (Ed) Wilusz
Posted on May 24, 2018 The repurchase obligation (or repurchase liability) is the legal obligation of a privately-held ESOP company to buy back shares of company stock fr ... [continue]
U.S. News Ranks Butterfield Schechter in 2018 Edition of "Best Law Firms" by
Posted on Nov 13, 2017 Congratulations are in order for the team of Butterfield Schechter LLP. On November 2, 2017, the firm announced that they had received a San Diego ... [continue]
Should an ESOP be Part of Your Succession Plan? by
Posted on Feb 01, 2017 If you've spent most (or all) of your professional career building a small- to mid-size business, and you've reached the point where you ne ... [continue]
Three Tips to Build Ownership Mindset by
Posted on Oct 05, 2016 To build an ownership mindset, we must engage employees. How to do it? Employee engagement is about honoring, recognizing, and uplifting people. It ... [continue]
ESOP's Tale by
Posted on Aug 30, 2016 It is no surprise the baby boomers, born between 1946 and 1964, are looking to retire as they turn age 65 at a rate of 10,000 a day for nearly the ... [continue]
ESOP: The Ideal Business Transition Option by
Posted on Aug 30, 2016 By: Daniel M. Zugell, CLU, ChFC, LUTCF and Samuel A. Landman J.D., LL.M. With 10,000 baby boomers (those born between 1946-1964) turning 65 eac ... [continue]
Executive Benefits for ESOP Owned S Corporations Post IRC Secs. 409A and 409(p) by
Posted on Aug 30, 2016   History of ESOPs in S Corporations Daniel M. Zugell, CLU, ChFC, LUTCF Pete Shuler Fred H. Thomas History of ESOPs in S Corporations ... [continue]
EMPLOYEE OWNERSHIP BILLS GAIN MOMENTUM by
Posted on Aug 30, 2016 Two bills have been recently introduced in the United States Congress to promote employee ownership to perpetuate American businesses and provide r ... [continue]
ESOP Trustees Should Require Peer Review in ESOP Valuations by
Posted on Mar 15, 2016 One of the most important fiduciary responsibilities of an ESOP trustee is to establish the annual stock price. This can be accomplished by seeking ... [continue]
ESOPs - Recycling Stock vs. Retiring It by Amber Lloyd
Posted on Oct 16, 2015 When a former employee is being paid his stock from an ESOP, and he has the right to "put" the shares back to the company or the plan, th ... [continue]
Employee Stock Ownership Plans and "Rebalancing" by Amber Lloyd
Posted on Oct 16, 2015 What is rebalancing?  It is peculiar to Employee Stock Ownership Plans (ESOPs).  In its Response to Technical Assistance Request (#4) (ht ... [continue]
How ESOPs can help with Family Business Transitions and Estate Planning by Jack Veale
Posted on Jun 04, 2015 Sometimes, families working in the business have conflicts caused by the differences with behaviors and expectations.  Some of these famil ... [continue]
Leadership Development vs Management Training by Jack Veale
Posted on Apr 17, 2015 In simple terms, Management Training is the process of educating the pupil with best practices, skills development, and management theory.  Le ... [continue]
What's an ESOP? A Holistic View by Jack Veale
Posted on Apr 03, 2015 What’s an ESOP? There are a number of articles on the legal translation of the answer for “What is an ESOP?” and yet they d ... [continue]
ESOP Governance Basics by Jack Veale
Posted on Apr 02, 2015 In the world of corporate tax returns, there are about 6 million tax returns filed each year with about half being C-Corps and the other S-Corps. ... [continue]
ESOP Governance with Family Involved by
Posted on Apr 02, 2015 Who hasn’t heard of a successful, hard-driving, dominant patriarch, who built a family fortune,  watch the family (and business) implode ... [continue]
Maximizing ESOP Valuation Values by Jack Veale
Posted on Apr 02, 2015 To maximize the value of a company, reliable projections from a reliable management team is the most common predictor of success.  Valuation f ... [continue]
Transitioning from an ESOP C Corp to S Corp by Kevin Long
Posted on Apr 02, 2015 The Corporate Structure ESOP companies who want to convert to subchapter S status must also take care of corporate structural issues on or be ... [continue]
A Business Owner's ESOP Checklist by Kevin Long
Posted on Apr 02, 2015 by Kevin G. Long, Esq. Most business owners assume that when they are ready to retire/sell/move on, that all-cash buyers or buyers that l ... [continue]
ESOP's Myths and the Benefits of Employee Stock Ownership Plans by
Posted on Jul 23, 2014 The original article appeared in EMPLOYEE BENEFIT PLAN REVIEW. Owners of closely held businesses under-utilize Employee Stock Ownership Plans ( ... [continue]
ESOPs as a Business Succession Tool For Small or Mid-Sized Construction/Engineering Firms by
Posted on Jul 23, 2014 Many engineering and construction firm owners will be retiring in large numbers in the coming years. Those whose children don’t want the fami ... [continue]
ESOPs - The Ideal Vehicle for Buying Out a Minority Shareholder by
Posted on Jul 23, 2014 Traditionally, employee stock ownership plans (ESOPs) are used as a vehicle to facilitate the retirement of the sole (or majority) shareholder of a ... [continue]
ESOPs - Keeping Family Businesses in the "Family" by
Posted on Jun 27, 2014 Family-owned businesses, a key pillar in the American economy, make up a significant number of the privately held companies across our country. Alt ... [continue]
Tax Rates, Strategic Premiums, and the Cost-Benefit of Selling to an ESOP by Chris E. Best
Posted on Feb 07, 2014 A question we are often asked by business owners in the exit planning process is similar to the following: “Would it be more financially ... [continue]
Exit Planning and Valuation by Chris E. Best
Posted on Feb 07, 2014 Eventually, every business owner will exit his or her business – whether voluntarily or otherwise. At that time, every owner wants to accompl ... [continue]
Why Choose an ESOP? by
Posted on Oct 10, 2013 Employee Stock Ownership Plans give your employees a slice of the ownership pie. When it comes to deciding upon an exit strategy, owners of ... [continue]
What is Your Ownership Transition Timeline? by
Posted on Oct 10, 2013 You’ve owned your business for years. You’ve grown it, nurtured it and now the time might be approaching for you to move on. After so m ... [continue]
What is Driving the Value of Your Business? by
Posted on Oct 10, 2013 Whether selling your business or engaging in a transaction that requires a valuation, knowing what your company is worth will give you a competitiv ... [continue]
What Are Your Ownership Transition Alternatives? by
Posted on Oct 10, 2013 There are several paths you can take when it comes time to transition ownership of your business. How do you determine which one is right for you? ... [continue]
Taking Your Company to Market by
Posted on Oct 10, 2013 If you’ve ever sold a home, you know how complicated it can be – the seemingly endless paperwork, the frantic attempts to clean the hou ... [continue]
The Pros and Cons of ESOPs: Weighing Your Options by
Posted on Oct 10, 2013 For the owners of closely held businesses considering ownership transition, the number of ownership transition options available may not be known. ... [continue]
The Modern ESOP and Fair Market Value After the End of Tax Cuts by John A. Kober
Posted on Jul 15, 2013 The Modern ESOP and Fair Market Value After the End of Tax Cuts by Keith D. Butcher, John A. Kober, and Jason C. Ray Read in PDF format ... [continue]
So, You're An ESOP Trustee by Chris E. Best
Posted on Dec 03, 2012 So, You’re An ESOP Trustee By Tracy E. Woolsey and Glenn W. Ball Many trust companies and departments find themselves acting as trust ... [continue]
ESOP Governance and their Ownership Culture by Jack Veale
Posted on Jan 07, 2012 Governance in the Dictionary means: “to Govern.”  The Dictionary term for Govern is: “to direct the actions and behaviors of ... [continue]