How to Successfully Launch Your ESOP

Posted by Jason Wellman on Wed, Jun 17, 2020
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Launching and Relaunching Your ESOP Infographic-1Over the next several weeks, we will be completing a series of blog articles on how to correctly launch and relaunch your company’s employee stock ownership plan.  This will require some strategic planning, which should not be confused with a business plan.  The major fundamental difference between the two is a business plan is about short to mid-term goals and strategic goals are about long-term goals for the company’s success. 

Growing an Employee-Ownership culture means making many decisions about the ways you want to proactively educate, empower, and engage your employee-owners about this unique benefit we call employee-ownership.

The first step in the process of launching your Employee Stock Ownership Plan is to celebrate by making an announcement to all your newly titled employee-owners.  This message can be delivered in an email or could take place in a large venue to ensure all the employee-owners hear the same message at the same time. 

Newly Formed ESOPs

The initial ESOP announcement for a newly formed ESOP should be personalized from the previous owner highlighting the following items:

  • Why did the owner transition to an Employee Stock Ownership Plan?
  • What does this mean for each of the newly appointed employee-owners?
  • How does this transition impact each of these employee-owners?
  • When did the company sell to an ESOP Trust?
  • What is the current and ongoing role for the business owner that sold the business?
  • How will selling to an ESOP change the company’s culture for each of the employees?
  • Does selling to an ESOP affect employee jobs in the future?
  • How does selling to an ESOP affect the tax obligation for the company?

Stay tuned for more One-Stop Blogs on launching and relaunching your ESOP! 

Topics: ESOP, Communications and Culture

Jason Wellman
Written by Jason Wellman

Jason, the Director of Ownership Culture, helps employee-owned companies by developing a comprehensive Ownership Culture through proactive educational resources for all participants to improve their understanding of this unique, nontraditional benefit we call an ESOP.

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