Structuring Options for ESOP Transactions: Advanced Techniques for ERISA Counsel and Plan Sponsors
An employee stock ownership plan or “ESOP” can be an extremely useful tool in terms of tax and employee benefits that it provides and in the contexts of business succession planning and corporate mergers and acquisitions. The design and structure of ESOP transactions and the administration of ESOPs in general, however, remain subject to heightened scrutiny. To help ERISA counsel, accountants, and corporate directors and officers understand the statutory and regulatory framework that governs ESOP transactions, our panel will discuss applicable laws and regulations impacting ESOP transactions, available regulatory guidance, and other critical considerations for structuring ESOP transactions. This program on advanced structuring alternatives for ESOP transactions will address the available financing alternatives for ESOP transactions, ESOP transaction structure alternatives, how management incentive plans may factor into transaction planning and procedures, clawbacks and earn-outs in ESOP transactions, and potential conflicts of interests in structuring ESOP transactions.