Employee Stock Ownership

Strinco is one of a few investment management firms nationwide offering extensive services in the management of retirement plans that are intended to be primarily invested in employer securities. ESOPs can be a very powerful investment vehicle for small and middle-market, privately held corporations. In addition to serving in their primary capacity as employee retirement plans, ESOPs can be used in many other ways, including:

  • Use tax-deductible corporate earnings to buy shares from owners of closely held companies who wish to sell while deferring taxation on capital gains from the sale
  • Reward employees with a benefit tied to corporate performance, while affording the company substantial tax benefits Finance corporate acquisitions
  • Create a market for inside or outside shareholders in closely held companies
  • Allow management shareholders in closely held companies to sell gradually and ease out of the business over a period of years
  • Enhance corporate performance and job satisfaction by creating a corporate wide “ownership culture”

Though flexible and useful, ESOPs are governed by very strict laws, and should only be managed by highly experienced fiduciaries. Strinco has over 20 years experience in the initial setup and long-term management of ESOPs. We can help to determine if an ESOP is a viable alternative for your company. If so, Strinco can assist in all stages of development, implementation, and long term management of the plan. We also assist existing ESOPs that are involved in complex corporate transactions, such as mergers and acquisitions. Strinco continues to be active in the management of over $3.5 Billion in ESOP assets nationwide.