Lump Sum Payment Offered by Former Employer

[AdamTM]

Hello,

A former employer offered an ESOP payout in lump sum. They will be diversifying the assets for anyone who does not take the lump sum, and the investment will be into a money market account. To reframe this more concisely, my shares will be purchased back by the company prior to 12/31/2025. I know the company is likely experienced more thanv a 3X increase in share value due to their rapid growth in the past year. The most recent valuation was at 12/31/2024. Will they need to perform an interim valuation, or will my shares be valued at the 12/31/2024 value, which is almost certainly 1/3 or less of the current value of shares? Anything I should do? Wondering if there are attorneys who specialize in this area whom I should consult with, or if this is a lost cause. Thank you!

[ESOP Guy]

There is nothing stopping them from using the 12/31/2024 stock price as long as it all happens on or before 12/30/2025. (Edit date from 12/20/2025 to 12/30/2025)  

 

There is nothing you can do.  This is common and done all the time in this industry.  The plan is on very solid ground.  If  you hire a lawyer you will be spending money to only lose.  

 

I would add it seems hard to know the value will 3x.   But this is the reason ESOPs do what is happening.  Management doesn't want to compensate former employees but want the increase to go to current employees who they see as being the primary contributors to the increase at this point. 

[AdamTM]

Thank you, ESOP guy!