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.
This episode of the First Business Bank Podcast covers:
- Reasons business leaders transition ownership through ESOPs
- Positives and drawbacks of ESOPs
- Key time and resource requirements for ESOPs
- The importance of employee education
Business succession planning is easier with trusted advisors helping you navigate the process. While we don’t structure ESOPs, the advantage of working with a business bank is the in-depth knowledge our experts have acquired over many years working with businesses that have gone through the ESOP process. First Business Bank’s experts have helped many businesses evaluate and execute all types of ownership transitions, which is why we say our experience is your advantage.
- Mark Meloy, CEO, First Business Bank
- Diane Smith, Vice President – Commercial Banking
- Tom Dott, Senior Vice President – Commercial Banking
- Chris Doering, Senior Vice President – Commercial Banking