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- Title
Owner Planning an Exit? Have You Considered an ESOP?
- Authors
HigginsJr., James F.
- Abstract
The article discusses the Employee Stock Ownership Plan (ESOP) as a viable option for the sale stock ownership in privately held companies. An ESOP is an employee retirement plan that is essentially a buyer of stock, and can buy as little or as much of the company's stock as the shareholders desire. According to the author, good ESOP candidates are companies who have an annual revenue larger than $7.5 million, and they can be perfect for owners who want to make a gradual transition out of the company. The article also discusses the misconception that subchapter S corporations are exempt from the plan. Tax benefits of an ESOP are also mentioned.
- Subjects
UNITED States; EMPLOYEE ownership; STOCK ownership; EMPLOYEE stock options; STOCK purchase agreements (Close corporations); RETIREMENT planning; RETIREMENT income; RETIREMENT benefits; SUBCHAPTER S corporations; SMALL business laws; CORPORATE tax laws; EQUITY participations
- Publication
Financial Executive, 2007, Vol 23, Issue 2, p16
- ISSN
0895-4186
- Publication type
Article