TITLE

Time to Cash Out? ESOP's an Option

AUTHOR(S)
Battersby, Mark E.
PUB. DATE
November 2007
SOURCE
Metal Center News;Nov2007, Vol. 47 Issue 12, p2
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The article provides information on an employee stock ownership plan (ESOP) for metal center operators in the U.S. The author inferred that an ESOP can be used to purchase the shares of a departing owner, borrow money at a lower after-tax cost or create an additional employee benefit. However, he averred that ESOPs have disadvantages such as a limit of 25% contribution, and its tax benefits only apply to C corporations.
ACCESSION #
27583763

 

Related Articles

  • Investing. Freeman, Peter // Money (Australia Edition);Aug2009, Issue 115, p16 

    The article reports on the move of the Australian government to limit the tax benefits generated by employee share schemes. It states that the schemes offer shares to employees at a discount and the tax payable on this discount often could be delayed until the shares were sold. According to the...

  • Employee Stock Ownership Programs: The New Economic Revolution? Jochim, Timothy C. // Academy of Management Review;Jul1979, Vol. 4 Issue 3, p439 

    This article examines the growth and characteristics of employee stock ownership programs and trusts in U.S. corporations. These programs represent a form of deferred-compensation where employees obtain company stock that is placed in a special company trust that cannot be taxed. These programs...

  • Maximizing Strategies Under Sections 404 and 415: Deductions and Allocations for C-Corporation and S-Corporation ESOPs.  // Benefits Quarterly;2001 Fourth Quarter, Vol. 17 Issue 4, p102 

    The article presents information on the research paper "Maximizing Strategies Under Section 404 and 415: Deductions and Allocations for C-Corporation and S-Corporation ESOPs," by Karen K. Stogdill, published in the October 2000 issue of the periodical "ESOP Report." Maximizing the deductible...

  • Global Stock Ownership Plans. Mosoff, Susan M. // Corporate Board;Jan/Feb99, Vol. 20 Issue 114, p18 

    Advises executives and directors to use care in designing global employee stock plans to enhance their effectiveness. Use of company stock ownership as a powerful incentive for executives; Expansion of the incentive program to overseas offices; Need to ensure that global stock plans comply with...

  • Strategic Problems and Tactical Promise: Unions and Employee Ownership. Blasi, Joseph R.; Kruse, Douglas L. // Labor Law Journal;Aug91, Vol. 42 Issue 8, p498 

    This article examines the representation of trade unions in the employee ownership phenomenon in the U.S. Employee ownership is ownership of more than four percent of the total market value of common or preferred stock of a corporation by a group of employees, including substantially more...

  • Union Considerations in Employee Buyouts. Wilkus, Malon // Labor Law Journal;Aug91, Vol. 42 Issue 8, p508 

    This article considers the union-led employee buyout phenomenon in the U.S. An employee stock ownership plan (ESOP) can bring many benefits to the standard leveraged buyout (LBO). First, there is real motivational effects of ownership. Secondly, ESOP transactions offer significant financial...

  • FINANCING THE ACQUISITION OF STOCK BY EMPLOYEES. Halperin, Jack H. // Journal of Corporation Law;Winter81, Vol. 6 Issue 2, p239 

    This article examines certain legal issues with respect to financing employee stock acquisitions directly or indirectly by a corporation pursuant to an employee benefit plan. The recently approved practice of financing the purchase price for nonqualified options by the delivery of shares of...

  • Exercising stock options: When is the right time? Shepherd, Leah Carlson // Employee Benefit News;Sep2006, Vol. 20 Issue 11, p24 

    The article explores the factors that must be considered by U.S. employees before deciding to exercise stock options. According to Paul Allen of Merrill Lynch, employees must consider their risk tolerance, need for cash and overall financial diversity and comfort. Information is presented on the...

  • ESOPs, TRASOPs, and PAYSOPs: A guide for he perplexed. Miller, John J. // Management Review;Sep83, Vol. 72 Issue 9, p40 

    Provides information on employee stock ownership plans (ESOP), PAYSOP or a tax credit ESOP, which soon became known as Tax Reduction Act Stock Ownership Plans (TRASOP). Types of ESOP; Basic functions; Key characteristics that companies interested in PAYSOP should consider.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics