More than a necessity for your employees, the benefits you offer serve to reward your workforce, set aside money for their retirement, and compensate executives for their commitment to growing your organization. Many employee benefit programs have the potential to create tax advantages for both the employee and company.

Executive compensation strategies integrate with personal taxation strategies and company objectives. We work with business owners and executives to ensure their compensation package is administered in a cost conscious manner.

Representing companies of nearly every size and industry, Keiter Stephens offers imagination, innovation, and knowledge in creating and implementing benefits packages to meet your goals and budget.

ESOPs (Employee Stock Ownership Plans)

Our professionals offer thoughtful solutions for diverse issues. ESOPs can be a welcome alternative to weigh against other options when business owners need a viable exit strategy.

History has shown business owners face difficulties in realizing the full value of their enterprises through traditional M&A transactions. ESOP structures can provide superior divestiture alternatives in the current economic climate by providing an exit strategy for owners where other succession plans may not exist.

Business owners and advisors like ESOP's flexibility in creating situation appropriate internal markets for shareholders to achieve liquidity. ESOPs also manage owners’ risks and reward key employees.

Benefits to sellers:

Opportunity for superior price

Potential continued relationships with the company

Reduced financial risk

Potential for tax advantaged sale proceeds

Opportunity for wealth creation

Benefits to management and the company:

Increased cash flow due to deductibility of principal payments in a leveraged ESOP

Recruiting advantages for key employees

Tax advantages resulting through qualified plan status of the ESOP

Position company to not pay income taxes (if 100% S-corporation ESOP)

Benefits to employees:

Improved relationships between employees and management

Favorable tax treatment compared to other benefit plans

Potential for wealth creation

Sense of company ownership for ESOP participants

To realize the many benefits of an ESOP, experienced consultants should design the plan, properly structure the ESOP sale, and help guide implementation, post sale.

ESOPs aren’t always the right choice—there are many issues to consider. But when an ESOP works, it can work very well.

Contact us to discuss how to best meet your needs.