Question: How can an employer engage employees in the company’s success, give themselves a competitive position in the battle for new and existing employees, and at the same time, facilitate the sale of the company to a group of trusted, motivated people?
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Oh, and if it can be done in a way that doesn’t place the company at a higher than necessary risk for violating ERISA, that would be even better.
Answer: Try an Employee Stock Ownership Plan! The ESOP, the lesser-known cousin of qualified defined benefit and defined contribution plans, is a tool that has been in the arsenal of closely held companies for several decades now. The ESOP can meet the needs of employers and employees alike.
Read more here.