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The NCEO’s first-ever ESOP transaction survey shows a number of trends in how companies structure, manage, and evaluate ESOP transactions.

The September-October newsletter included a Q&A in which our answer made a general statement that people selling to an ESOP should not pay success fees. Several readers responded forcefully.

Most of you reading this participated in 401(k) plans before you heard of an ESOP. 401(k) plans may seem more familiar and understandable, and, in fact, they are a great way to understand how ESOPs work as retirement plans.

ESOPs are most often used to buy out 100% of the ownership of a closely held company. Often, ESOPs are the best choice for a family business that has passed ownership from generation to generation (for example, King Arthur Baking was family owned from the 1790s until it did an ESOP).

Employee ownership can be a competitive advantage in hiring people, and the experts on this subject are the people who are making it happen in their own companies.

Employee ownership can be a competitive advantage in hiring people, and the experts on this subject are the people who are making it happen in their own companies.

Is an ESOP really a good retirement plan? Like the answer to lots of questions in life, the answer is “compared to what?”

It might seem that convenience store chains are not the most likely business to find a high concentration of ESOPs. With their high turnover and dispersed locations, ESOPs might seem a challenge.

The answer to this question may seem obvious because ESOPs are part of the Employee Retirement Income Security Act (ERISA) and legally are considered retirement plans.