Employee Stock Ownership Plans
Share some of the wealth with your employees.
Employee stock ownership plans (ESOPs) allow owners of privatelyheld companies to share ownership with their employees.Technically, ESOPs are defined-contribution employee benefit plansthat invest primarily in the stock of the employer company. Assuch, most ESOPs distribute the stock to employees as a benefit,rather than selling employees the shares. ESOPs are commonly usedto give retiring owners a way to cash out all or part of theirholdings without selling the entire company. But creating a marketfor shares of the company can also be used to raise funds forexpansion. ESOPs are easy to set up and are used by thousands ofemployers.
Excerpted from Grow Your Business
