ESOP


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ESOP

 (ē′sŏp)
abbr.
Employee Stock Ownership Plan

ESOP

(ˈi sɒp)

n.
a plan under which a company's capital stock is acquired by its employees or workers.
[1970–75; e(mployee)s(tock)o(wnership)p(lan)]
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.ESOP - a program under which employees regularly accumulate shares and may ultimately assume control of the company
stock purchase plan - an organized plan for employees of a company to buy shares of its stock
References in periodicals archive ?
* Another option: The ESOP Association (www.esopassociation.org), which has an Illinois chapter.
The discussion will cover the unique relationships among the Board of Directors, Trustee, and ESOP committee or plan administrator of corporations owned wholly or in part by an employee stock ownership plan.
Lis Stewart, director of the Center for Family Business Excellence at accounting firm EisnerAmper, says having loyal, effective managers can make a difference for some owners considering an ESOP. "We've found that employers who don't believe they have family members who are interested or eligible to take over the business, but have viable managers in the company who are interested in running and owning it but lack the financial resources, are more likely to consider an ESOP," Stewart says.
Brockhoff's practice focuses on ESOP transactions, mergers and acquisitions and joint ventures.
ESOP activity traditionally heats up when the M&A marketplace cools down as it allows for sellers to "create" an internal buyer of their stock.
Ascensus has announced it has added acquired ESOP Economics, providing consulting and software solutions related to employee stock ownership plan (ESOP) repurchase obligations, to Ascensus' TPA Solutions division, the company said.
Founded in 1993, ESOP Economics is exclusively focused on helping ESOP companies quantify their future repurchase obligations (i.e., their legal obligation to buy back stock distributed to ESOP participants) and develop strategies for managing and funding them.
The new company, SES ESOP Strategies, a Stevens & Lee/Griffin Co., is expected to be operational on Oct.
In conclusion, although ESOPs are not the right ownership succession strategy for every business, every business owner should at least consider whether an ESOP might be their best strategy.
For employees, the ESOP represents an expansion of their current retirement program, which already includes a matching 401 (k) plan as well as healthcare, dental, and vision plans.
An ESOP is a type of retirement plan that often is used as a vehicle for succession planning.