Over 10,000 companies employing over 10 million workers have an Employee Stock Ownership Plan (ESOP) in place. The ESOP structure creates an “ownership mentality” among a company’s workforce and some studies have concluded that companies with employee ownership perform better than peer firms. An ESOP is also an effective way for shareholders of closely held businesses to sell their shares without bringing in a third-party owner—a very attractive solution for many family-owned businesses. Special rules allow ESOPs substantial financing and tax advantages.
Creating an ESOP is not easy. However, our ESOP team is experienced in dealing with the complexities of both establishing and maintaining ESOPs for private and public companies in a wide array of industries.
Our team brings together employee benefits, corporate, labor & employment, estate planning, securities, finance, tax, and other firm practitioners to help our clients make effective choices regarding ESOPs and to maximize the benefits that an ESOP offers.
Crain’s New York | May 24, 2017
San Francisco labor and employment partner Karen Ng is quoted in this article about NYC Public Advocate Letitia James’ policy brief advocating for employee stock ownership plans (ESOPs) as a succession plan for employees of businesses whose owners are preparing to retire.