Model ESOP: Plan Documents with Optional Provisions and Section-by-Section Explanations (CD Included)

An employee stock ownership plan (ESOP) is a type of employee benefit plan that invests in the stock of the employer. (Do not confuse ESOPs with stock options or similar equity compensation plans; they have nothing in common. Also do not confuse the U.S. ESOP covered by this book with stock plans in other countries.) Thousands of U.S. companies have ESOPs, due to the many advantages they offer both for the employer and for employees. However, the complexities of ESOP law make drafting a plan document a challenge.

This book provides a model ESOP document with alternate provisions, plus a detailed, step-by-step explanation and commentary on the plan. ESOPs are too complicated for laypeople to draft a final document solely from model plans such as this, but this book helps companies develop the ESOP they want and practitioners to draft the documents they need to produce. The third edition has been revised to reflect tax law changes, including the Pension Protection Act of 2006. The book includes a CD with the plan documents in word-processing format. The model plan is by Karen Ng, a noted attorney and highly experienced ESOP expert, and the explanations are by NCEO Executive Director Corey Rosen.