Journal of Pension Benefits, Vol. 11, No. 2, p. 50, Winter 2004
16 Pages Posted: 28 Jul 2009
Date Written: 2004
Beginning in 1974, Congress enacted numerous provisions designed to encourage employers to adopt employee stock ownership plans (ESOPs). Changes to the Internal Revenue Code of 1986 (the Code) enacted in 1996 and 1997 have made it possible, for the first time, for an S corporation to adopt an ESOP. This article provides an overview of the major advantages and disadvantages of ESOPs, and the major considerations to be considered by a corporation and its owners in deciding whether to adopt an ESOP. In doing so, it focuses primarily on private companies.
Keywords: Employee Stock Ownership Plans, ESOPs
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