An Introduction to ESOPs

Read ahead for easy-to-understand resources that explain the significant tax, liquidity, and legacy-building advantages of an employee stock ownership plan.

Download our ESOP Quick Reference now.

ESOPs:  The Basics

Employee stock ownership plans enable closely-held companies to sell equity, at a fair market value, to an employee trust.

This is not a stock option program. Instead, an ESOP is an ERISA-authorized, defined contribution plan.

What is an ESOP? (Optimized for Email)

How Does an ESOP Work?


Who can Benefit from an Employee Ownership?



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

Want to Learn More?


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."

Webinar Understanding ESOPs (Vistage Atlanta 26Aug20)