Understanding ESOP: Ownership Structures, Basics, and Culture
Exploring the Employee Stock Ownership Plan (ESOP) in depth, covering ownership structures including family-owned, partnerships, and outside investors. Delve into ESOP basics such as ERISA and Department of Labor regulations, as well as the structure involving trustees, Board of Directors, and company performance oversight. Discover the impact of ESOP on company culture, employee engagement, and the challenges ahead.
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Presentation Transcript
BY BRAD WEIR
OWNERSHIP MAJORITY SHAREHOLDER (FAMILY OWNED) PARTNERSHIP (50/50) EQUITY OWNERSHIP (OUTSIDE INVESTORS) ESOP (EMPLOYEE OWNED)
ESOP BASICS ERISA (Employee Retirement Income Security Act) DEPARTMENT OF LABOR (Protects Shareholders) USED AS AN EXIT STRATEGY BY OWNERS EMPLOYEES SHARE IN THE COMPANY S SUCCESS ESOP CAN BE 100% OR LESS OF OWNERSHIP
ESOP STRUCTURE Trustees vote the ESOP shares (BOD) The BOD appoint the Trustees The BOD hire the President (CEO) The BOD has oversight of the Company Performance Trustees protect the interests of the ESOP beneficiaries. DOL is the ESOP watchdog.
ESOP CULTURE Employee Participants .Field & Office. Ownership attitude. Field & Office Beginning of career vs. final stretch of career. Engagement of employees
THE NECA FACTOR Who is running the show? Traditional NECA relationships Meeting Needs: Long Term vs. Short Term Engagement: Early vs. Late The Challenge Ahead
QUESTIONS??? SORRY, NOT ENOUGH TIME!!!!!! Thank You!
