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.

Employee Ownership:  Value for all Stakeholders

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

What are the key ESOP benefits (Q&A Webinar)

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. These plans are tax-deferred.

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.

Webinar Understanding ESOPs (Vistage Atlanta 26Aug20)

Additional ESOP Resources


What are the tax benefits associated with an ESOP? (Q&A Webinar)


What is a 1042 rollover?


How are ESOP shares distributed? (Q&A Webinar)