Employee Share Ownership Plans

 

An Employee Share Ownership Plan (ESOP) is a structure that provides a company's workforce with an ownership interest in the business. 

 

An ESOP is put in place for the following reasons:

• to attract talented prospective employees;

• to retain talented existing employees;

• to foster a motivating ownership culture resulting from participation in the profits of the business; and,

• to align the financial objectives of the employees and the shareholders of the business.

 

Implementing an ESOP in a private company often provides for the transfer of ownership transfer between the company and its shareholders and/or between  the company's shareholders based on a Unanimous Shareholders Agreement (USA) that is put in place.

 

Our role for an ESOP may include one or both of the following:

• An Initial Valuation to commence the ESOP; and,

• An Annual or Periodic Valuation thereafter in support of:

  • the USA of the company; and,

  • the transfer of share ownership interests between:

    • the company and its shareholders; and,

    • between the shareholders of the company.

 

Click here for our comments on Unanimous Shareholders Agreements.

 

Click here for a PDF Version of our firm's experience for purposes of Employee Share Ownership Plans.

 

Contact us on a confidential no obligation basis to discuss your situation and how we may be able to assist you.