Planning the future of your company can be a difficult, emotional process. As business leaders thoughtfully plan ownership transition, some turn to employee stock ownership plans (ESOPs) to help accomplish many of their top priorities.
An ESOP is an employee benefit plan that holds shares of the company for employees. Business owners sell a specific portion of the company to the ESOP and those shares are held within the ESOP trust for employees. Employees realize the value of their shares as they retire or leave the company if they qualify under the vesting schedule.
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