Find Your Resource

Sustainability is the concept of utilizing a resource in a manner that enables longevity. In an ESOP company, the concept relates specifically to perpetuating the ESOP while maintaining the health of the business. ESOP policy decisions are generally established at the inception of the plan when there is not a clear understanding of how such decisions will influence the business as it matures.

Recent Federal legislation resulted in increased long-term capital gains tax rates. As a result, more business owners are expressing their interest for tax-deferred sales to ESOPs. As the selling shareholder to an ESOP, you have the option to pay the capital gains tax created by the sale, or if you are eligible, you can elect section §1042 of the Internal Revenue Code. Electing §1042 allows the selling shareholder(s) to defer the capital gains tax in connection with the sale to an ESOP, and if structured properly would result in a permanent avoidance of paying the capital gains tax. 

Administering an ESOP can be tough work. We will take an arial view of many different topics and understand some of the key details to understand before you consider implementation to your ESOP.

Take an aerial view of many different topics and review some of the key details to understand before you consider the implementation to your ESOP.

Every year we hear great ideas from ESOP companies on culture, administration, sustainability, governance, and more. This seminar brings together many of these ideas in a single place. You will learn:  What are some of the best ideas from ESOP companies in corporate culture and communication?  What are some of the best ideas from ESOP companies in plan design, operations, and governance?

Gather fresh ideas and discuss a wide range of topics that by the end of this webinar you may be uttering the phrase “We should do that with our ESOP”!

ESOPs benefit employees, sellers, and the organization's bottom line - in most companies. From time to time, mistakes with an ESOP have caused legal problems for the company, personal loss to plan fiduciaries, and damaged morale. This session will cover a variety of "anti-case studies" and discuss different ways companies can avoid problems before they arise.

Many ESOP companies in the United States are organized as 100% owned S corporations and therefore do not have federal or state income tax obligations. However, even 100% S corp ESOPs have other tax obligations that can be reduced or eliminated thanks to economic development incentives.

Corporate governance shouldn’t just be a priority; good corporate governance should be a prerequisite. This session will go into detail on the characteristics of strong corporate governance and the characteristics of strong ESOP governance and the interplay between the two.

ESOP Administrative Committees can play a variety of roles. Most commonly, they either are the fiduciary or direct the fiduciary. In both cases, they also make sure that plan administration is properly handled. This webinar will explore who should be on it for how long? What kinds of information should they gather? How should they communicate with employees? If they are directing a trustee, how can they make that interaction most useful? What are some examples of don't do that's administrative committees have stubbed their toes on?