An Employee Stock Ownership Plan (ESOP) gives employees an equity stake in the company, often resulting in improved employee performance and increased company value over the long run. ComStock Advisors can help determine whether an ESOP is appropriate for your business, and if so, will advise you on its establishment and maintenance.
ComStock Advisors is often retained by ESOP Trustees seeking financial advice. Some examples of this include:
- A trustee whose sponsoring employer is considering a large capital project or acquisition and needs to understand how the proposed activity will impact the ability of the sponsoring company to invest and grow, service debt, and meet repurchase obligations.
- A trustee may seek financial advice on the reasonableness of incentive compensation for executives. Trustees often want to understand the potentially dilutive impact of incentive compensation plans on the sponsoring company’s share price.
- A trustee will want to ensure that an ESOP has the financial resources to provide for the repurchase of terminating participant shares. ComStock Advisors provides insight into the cash flow of the sponsoring company, which in combination with a repurchase liability study, can be used to gauge its capability to fund its repurchase obligations.