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ESOP Rookie

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  1. There are no suspense shares as the loan was paid off almost 10 years ago. Everything is pretty straight forward. The company is 100% ESOP owned and the transaction would be a 100% stock purchase by a non-ESOP company. So the ESOP would be terminated as part of the close of the transaction. Are there any other scenarios in which a short term executive could benefit from the sale or I am just really that unlucky to be an executive in a company that is selling and not able to participate? Any ideas would be extremely appreciated. Thank you.
  2. I have been at my ESOP company for almost 2 years. and this is my first experience at an ESOP. We are 100% ESOP and 2019 will be the first year eligible for an ESOP contribution. As an Executive, my pay is on the higher end. However, since I have only been there 2 years I have not had the chance to accumulate any shares. We are in the early stagers of selling the customer and I can not seem to find a good source on how funds are distributed among the employees. I have read that the proceeds of the sales would be distributed based on % compensation of on overall compensation (like the normal contributions are). However this does not seem logical as a line and staff employee who has been with the company for say 25 years and accumulated a decent amount of shares would not get as much as an executive who has higher compensation but much less tenure. Has anyone had experience with this. As an executive I obviously want to have financial participation in a sale, but if payment to employees is based on shares I would not be receiving much. What other compensation options are there in an ESOP since the company is 100% employee owned and all money goes to the shareholders? Thank you in advance for the help.
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