Employee Ownership Trusts: An ESOP Alternative

Sue Crockett, Rick Plympton, and Christopher Michael joined Club E to discuss Employee Ownership Trusts. During this event, the panelists discussed how selling to an employee ownership trust (EOT) should be considered as an alternative to an ESOP when the cost of an ESOP is a major consideration, as well as when perpetuity of the employee ownership structure is a major goal. The presentation also includes a discussion of wealth accumulation strategies in an EOT, valuation for an EOT sale, choice of EOT trustee, oversight under state trust law, the transition of an ESOP to an EOT, and examples of EOT-owned companies. After watching this event, you will come away with the "Why" to use an EOT instead of an ESOP, the "How" to transition to an EOT, and the "Where" to look for further guidance.