Employee stock ownership plans, often referred to as "ESOPs", have been frequently used as a component of employee compensation over the last three decades. Their versatility within the business market has earned them popularity over the years. From a practical perspective, ESOPs can address key workplace issues such as productivity, competitiveness, succession, recruiting, and retention. This article provides an overview of what ESOPs are, key issues to consider when structuring an ESOPs, and provides examples of key documents. In particular, this article focuses on private (i.e., non-public) corporations.

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