Employee Stock Ownership Programs (ESOPs)
ESOPs offer significant benefits to both privately-held and publicly-traded companies.
Kutak Rock has extensive experience in understanding the unique issues that apply to ESOP design, operation, and governance, as well as in assisting companies to achieve their goals utilizing ESOPs.
For privately held companies, an ESOP can be an important tool for succession and exit planning for owners. We regularly consult with clients regarding ownership transfers and liquidity issues, including the use of ESOPs.
We also help clients determine whether an ESOP is right for their company. For clients who want to form an ESOP, we guide them through every step of the stock transaction. In addition, we advise on matters relating to transaction structure and prepare plan and transaction documents.
In addition, for both publicly-traded and privately-held companies, an ESOP can provide a cost-effective benefit and foster a culture of ownership and pride among employees. We are experienced partners in assisting clients with the legal issues associated with ESOP benefit design and participant communications.
We are equipped to assist employers with issues unique to ESOPs such as special fiduciary considerations, valuations, investment diversification and distributions. We are well-versed in the unique regulatory disclosures that apply to ESOPs, including fiduciary and diversification requirements which apply when a qualified plan holds publicly-traded employer securities.