Employer stock as matching contribution

[Guest Melissa Winslow]

An employer is funding the matching provision of a defined contribution plan (this is not an ESOP plan) with company stock. When this happens, should the stock be categorized as issued and outstanding, as Treasury Stock or perhaps something else? Also, should the shares attributable to a participants matching contribution be assigned to their account? Or, should the value of those shares at the time the match is funded be assigned while the actual shares remain in a "pooled account" of sorts?

[Jon Chambers]

The stock is definitely not Treasury stock--it's owned by the trust. I think that makes it issued and outstanding. I'm not sure I understand the second part of the question. The matching shares are owned by the trustee, with all Plan assets, and the individual's account represents a beneficial interest in the equivalent number of shares. If your question goes to the registered owner of the shares, that should be the Trustee, as owner of all the shares.