Employee stock ownership plans

Employee stock ownership plans as an exit strategy and incentive program

ESOPs help companies ensure continuity and compensate talent

Business owners looking for an exit strategy that is tax favorable may want to consider alternatives to private equity or finding a buyer for their business. For the owner concerned about their employees’ well-being and their company’s longevity, employee stock ownership plans (ESOPs) can ensure the company’s ongoing success after they depart while rewarding loyal employees.

ESOPs are often misunderstood. Business owners may know the basics—an ESOP is an equity-based retirement plan that allows employees to become owners of the company—but they may view it as simply an employee incentive. ESOPs offer so much more, including the potential for significant personal benefits to the company’s founders. 

RSM has advised hundreds of clients on the upside of ESOPs. Our team has extensive experience in the structuring and compliance issues related to employee ownership. As the middle market leader, RSM has the scale to assist you from an ESOP transaction through to ongoing maintenance of your plan.

Watch ESOP insights from Anne Bushman, RSM Compensation & Benefits Leader

Industry sectors that can benefit from ESOPs include:

The construction industry is unique in that company ownership is often passed from one generation to the next. We’ll recommend how to use an ESOP to help you preserve a business and a family legacy.

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