Employee Stock Ownership Plans

What kind of incentive program increases profitability?

ESOPs: Employee Stock Ownership Plans…

Many business owners have discovered that implementing an Employee Stock Ownership Plan (ESOP) can be an effective method of enhancing company value. Davie Kaplan has over 25 years of experience advising clients on ESOP related issues in addition to performing traditional audit and tax services for ESOPs.

In many cases ESOPs make it possible to increase employee productivity, improve management incentives and realize tax advantages not available to other business entities. Some common misperceptions concerning ESOPs are highlighted below:

ESOP Myths

  • ESOPs must pay taxes
  • Management loses control
  • ESOPs are too expensive to create and maintain
  • ESOPs are permanent

ESOP Facts

  • ESOPs provide significant tax benefits
  • Executives can maintain control
  • ESOP shareholders are your most important asset
  • ESOPs create a market for company stock
  • ESOPs inspire improved employee commitment and performance
  • ESOPs can be reversed

Davie Kaplan can draw on our experience to serve as your ESOP consultant in helping you to determine if an ESOP may be a good option for your business:

  • Profit Improvement
  • Repurchase Liability
  • Put Options
  • Management Incentives and Control
  • Gross Ups/Downs
  • Tax-Free Rollovers
  • Eligibility and Vesting Decision
  • Unbundling ESOP’s

Please contact us today if you would like to explore ESOPs further.

Interested in learning more?

Coronavirus: We're Here to Help

Davie Kaplan, CPA, P.C. is dedicated to our Davie Kaplan family and our clients as we all face this COVID-19 Coronavirus Pandemic together. The link below will take you to our compilation of COVID-19 related information in order to assist you and provide additional resources and insights. As new information emerges we will continue to update these links. Please contact us directly with questions, and stay safe and healthy!

Learn More