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Solving a Common ESOP Problem : Continuing Contributions or Alternative Accounting
National Center for Employee Ownership [NCEO]Link to more items from this source
Feb. 24, 1998
Article by attorney David Johanson (2/98). Many companies sponsoring an employee stock ownership plan and trust (ESOP Companies) face a significant issue after either the debt incurred to purchase the ESOP's interest is repaid in full or the ESOP reaches its maximum ownership level (e.g., 100%) by some other means. At that point, it gets very difficult to provide broad-based equity incentives to new employees who were not employed during the time the debt was being repaid or the original contributions were made.

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