- Thirty years in financial services, involved in M&A, recapitalization, acquisitions and restructuring transactions, in providing senior debt, junior capital and equity to middle market and large corporations.
- Managing Director of CSG Partners focusing on ESOP transactions.
- Senior Vice President of GE Capital Media, Communications & Entertainment unit.
- Founder and CEO of Access Credit Corporation, an equipment finance company specializing in municipal leasing, maritime finance and advisory services.
- Developed a residual option product and was actively involved in acquiring options in excess of $1.5 billion of original value.
- All 7 Best Practices
- Pre-Meeting Discovery Process
- One-on-One Call with Expert
- Meeting Summary Report
- Post-Meeting Engagement
ESOP Feasibility, Design and Implementation
- Directed Trustee
- An ESOP's directed trustee must make sure the plan is compliant with ERISA (see below). Unlike a discretionary trustee, a directed trusted acts at the direction of a company's board.
- The Employee Retirement Income Security Act of 1974 (ERISA) is a federal
law that sets minimum standards for pension plans in private industry.
ERISA does not require any employer to establish a pension plan. It
only requires that those who establish plans must meet certain minimum
standards. Source: U.S. Department of Labor.
- An employee stock ownership plan (ESOP) is a retirement plan in which
the company contributes its stock (or money to buy its stock) to the
plan for the benefit of the company’s employees. The plan maintains an
account for each employee participating in the plan. Shares of stock
vest over time before an employee is entitled to them. With an ESOP,
you never buy or hold the stock directly while still employed with the
company. If an employee is terminated, retires, becomes disabled or
dies, the plan will distribute the shares of stock in the employee’s
account. Source: U.S. Securities and Exchange Commission.
- Form 5500
The Department of Labor, Internal Revenue Service, and the Pension Benefit Guaranty Corp. jointly developed Form 5500 for employee benefit plans' annual reporting requirements under ERISA and under the Internal Revenue Code.
- QRP is "qualified replacement property," usually stocks and bonds of domestic U.S. corporations, that is purchased as part of a 1042 rollover to defer capital gains tax.
- Stepped-up basis
- A stepped-up basis is a new, adjusted value of an asset for tax purposes. A stepped-up basis is higher than the original cost basis of a purchased asset, so it minimizes gains for capital-gains tax purposes.
- Third-party adminstrator, or TPA
- A third-party administrator is an outside party that provides record-keeping, statement production, and other administrative services for an ESOP.