Business Succession Planning
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Employees
Cash or stock
4
Shares held
in trust
3
Csh or
stock
1
Cash
2
2
Stock
2
1. Annually, the corporation makes tax deductible contributions of cash or stock to
the ESOP.
2. The ESOP uses contributed cash to purchase shares of company stock from the corporation and/or its shareholders.
3. The ESOP holds the
company’s
stock in a trust established for
the
benefit of employees.
4. Employees receive their
vested
interest in stock or cash after
they
leave the company.