EP016: What Business Owners Need to Know About an Employee Stock Ownership Plan (ESOP)

Dynasty Leadership Podcast

Steve Nelson, ASA, is the Managing Director for Chartwell, a financial advisory firm. Steve breaks down everything business owners need to know about ESOPs (Employee Stock Ownership Plan) and the seven steps you need to take to get one implemented in your company. Steve also outlines the various benefits employees would receive if your company had an ESOP in place.

Key Takeaways:

[1:00] Before we get started, what is an ESOP?

[3:10] What are some of the benefits of an ESOP?

[6:25] Remember, ESOP is not for everyone.

[6:40] Who would best benefit from an ESOP?

[13:40] What are the seven steps business owners need to do to get an ESOP?

[17:15] How many lawyers typically get involved in an ESOP transaction?

[19:15] Employees need to understand that they’re not a direct owner of the stock. They are a beneficiary of the trust. Why is this distinction important?

[24:15] Big companies can greatly benefit from an ESOP, but what about smaller-sized companies?

[26:15] Why would anyone want to be a trustee?

[29:30] Steve estimates that there are probably 7,000 to 8,000 privately-held ESOPs in the country and it’s growing.

[31:10] ESOPs give opportunity for wealth to people who otherwise would not have that opportunity.

Mentioned in This Episode:

Dynastylc.com

Chartwellfa.com