Katten advises employee stock ownership plan (ESOP) and employee stock purchase plan (ESPP) sponsors, fiduciaries, and lenders. We represent both publicly traded and family owned businesses that utilize these plans in a variety of industries, including services, engineering and manufacturing.
We help clients to fully realize the unique benefits that ESOPs and ESPPs offer to companies and their owners, including tax advantages for the financing of corporate acquisitions and capital improvements, stock purchases from retiring owners, succession planning, and charitable giving. ESOPs and ESPPs provide a market for the shares of closely held businesses and can motivate employees to achieve greater productivity and workplace satisfaction.
As we assist clients in using ESOPs and ESPPs, we guide them through the tax and other legal rules and requirements to ensure their compliance with tax, labor, securities and ERISA requirements, as well as the requirements of lenders and investors. Our counsel takes into account the overall impact that ESOPs and ESPPs will have on employee benefit programs, cash-flow planning and corporate governance.
We also assist companies, trustees and lenders in connection with the establishment, maintenance, sale and restructuring of employee ownership through an ESOP.