Both S corporation and C corporation ESOP companies must be prepared to pay cash equal in value to stock in a participant’s account, per ERISA distributions rules.
The ESOP Association
ESOP Association Resources
ESOP Brief, Repurchase Obligation, Resource
ESOP Brief, Repurchase Obligation, Redeem, Recycle, Opportunity Cost, Resource
This ESOP Brief introduces the concept of opportunity cost and the implications for share price when private companies devote resources to fund repurchase obligations.
ESOP Brief, Repurchase Obligation, Valuation, Recycle, Redeem, Resource
This ESOP Brief explains how an ESOP company’s repurchase obligation should be understood and managed, and how the repurchase obligation associated with the ESOP should be reflected in the valuation.
ESOP Brief, Leveraged ESOPs, Convertible Stock, Financing, Resource
How to use convertible preferred stock in an ESOP.
ESOP Brief, Fair Market Value, Economic Value, Valuation, Distributions, Repurchase Obligation, Resource
A summary of the valuation issues S corporations can encounter. This is a highly technical ESOP Brief.
ESOP Brief, Leveraged ESOPs, Non-leveraged ESOPs, Financing, Resource
This Brief describes common accounting practices for non-leveraged and leveraged ESOPs.
ESOP Brief, ESOP Plan Design, Repurchase Obligation, Resource
A summary of the key steps involved in designing and implementing an ESOP for a privately held company.
ESOP Brief, Benefits, Retirement Benefits, Diversification, Distributions, Resource
A broad overview of how ESOPs compare to other employee benefit plans, like 401(k) plans, and what the benefits of ESOPs are to employee owners.