Employee Stock Ownership Plans (ESOPs) are a special type of Defined Contribution stock bonus plan in which the contributions are invested primarily in voting stock issued by the sponsoring employer. When a corporation sponsors an ESOP, its employees become beneficial owners of the company where they work. Benefits are distributed to participants in the form of employer stock, cash or a combination of both. ESOPs are intended to be tax-qualified plans and are, therefore, subject to most of the requirements imposed on other types of employer-sponsored retirement plans.

A leveraged ESOP is specifically designed to borrow money from a lending institution in order to fund the trust that supports the ESOP. The proceeds of the loan must be used to buy securities issued by the sponsoring employer or to repay ESOP loans.

In addition to our full Daily Accounting Services and Traditional Balance Forward Accounting Services, McCready and Keene has special expertise in managing ESOPs. Whether your ESOP is leveraged or non-leveraged, McCready and Keene can prepare an ESOP repurchase liability study that projects the liquidity needs of your ESOP over the next five to 10 years.