The Benefits of an ESOP


Read ahead for insights and videos on the tax, continuity, and legacy-building benefits of employee stock ownership plans.

Tight on time? Download our ESOP quick reference.

Building Value for all Stakeholders

Employee stock ownership plans create concrete reward structures for companies, selling shareholders, and employees alike.

Who can Benefit from an ESOP?



Selling shareholders gain liquidity & asset diversification

Can defer capital gains taxes on proceeds

Maintain upside potential & a role in the company



Plan sponsors receive tax deductions on sale amount

Can become income tax-free entities

Get a tool to retain & attract talent



Employees secure a unique retirement benefit (company stock)

Earn real stake in their company

Gain workplace stability & peace of mind

What About a 100% Employee-Owned Business?


An ESOP is an ERISA-authorized, defined contribution plan that invests in employer securities. Employee stock ownership trusts are tax-exempt entities.

As a result, an employee-owned S corporation can operate income tax-free (federal & state) in most jurisdictions.

100% ESOP-Owned S Corps can Double Their Cash Flow

compared to similar, non-ESOP S Corporations.

Interested in a Closer Look?

Since 2000, CSG Partners' nationally-recognized, investment banking team has helped private companies capitalize on the benefits of ESOPs.

Join our founder, Larry Kaplan, for a compressive introduction to ESOPs. You'll learn more about key ESOP benefits, tax efficiencies, structures, valuations, financing, and typical "good fits."

For additional news and insights from our advisors visit our ESOP Resources page.