The ESOP Association has been the leading voice for employee-ownership nationwide. Organized as an advocacy organization under federal tax laws, The ESOP Association continues to lead the charge protecting ESOPs from unfriendly federal legislation and fighting for public policy changes benefiting ESOPs. TEA is the only membership association advocating on behalf of all companies with an Employee Stock Ownership Plan, regardless of their business type.

This publication provides an introduction to how shares of company stock held by an ESOP are valued and covers basic concepts that may be of interest to ESOP participants. It is not meant to provide complete or authoritative guidance on any issue. Other publications from The ESOP Association are available that address various technical issues, providing more in-depth discussion on valuation issues pertinent to ESOP stock valuation.

The ESOP Association’s Advisory Committee on Administration created this handbook to assist with ESOP administration, recordkeeping, compliance, and technical issues related to ESOPs. The handbook is organized in a manner that will take you from the beginning steps of setting up your ESOP through the aspects of compliance and government regulatory reporting. Effective and accurate administration of your ESOP is critical in the promotion of employee ownership as well as in preserving the tax status and retirement benefits of ESOPs. Accurate administration and documentation enhance the credibility and acceptance of an ESOP and is integral to regulatory mandates to operate the plan for the exclusive benefit of employee participants and their beneficiaries. This handbook covers volumes of detailed material. We’ve made every attempt to provide an overview of complex administrative issues that may arise to help plan sponsors and third-party plan administrators as they strive to provide complete and accurate reporting on ESOP operations.

FOR PERSONAL PRINTING ONLY: This guidebook has been developed through the continuous curation of best practices, experiences, and wisdom of more than 35 years’ worth of Chapter officers and Chapter programs. It is meant to help guide you on your own leadership journey and to make the responsibility of leadership a little lighter and more enjoyable.

The ESOP Association has been the leading voice for employee-ownership nationwide. Organized as an advocacy organization under federal tax laws, The ESOP Association continues to lead the charge protecting ESOPs from unfriendly federal legislation and fighting for public policy changes benefiting ESOPs. TEA is the only membership association advocating on behalf of all companies with an Employee Stock Ownership Plan, regardless of their business type.