ESOP Edge

Built to fit: A new generation of owners

July 1, 2016

After celebrating 40 years in the building materials industry, Franklin Building Supply knew they needed to plan for the next 40 years. To continue their success, they decided their next chapter should be as a 100% employee owned company.
 

Think you know ESOPs?

June 29, 2016

We are breaking down Employee Stock Ownership Plans to look at the benefits an ESOP can bring to your business.
 

Ask an ESOP expert

June 22, 2016

Find out more information on stock distributions and net unrealized appreciation when participants take a distribution.
 

Reminder: Final ESOP IRS determination letter filing cycle about to end

June 6, 2016

In 2015 the IRS announced that the staggered five-year remedial amendment cycles will be eliminated effective January 1, 2017.
 

Overview of DOL final fiduciary regulatory package

June 6, 2016

Find out what our business leaders and legal team have found that impacts ESOPs thus far from analyzing the DOL fiduciary regulation package.
 

Understanding the Nuances of Your Plan Language: Forced/Involuntary Distributions

May 26, 2016

Do you know when you are required to make distributions to terminated participants under the terms of your ESOP document? Review some examples of when ESOP distributions can or must generally be made without the consent of the participant.
 

Company Stock in ESOPs: What Should a Fiduciary Do?

May 18, 2016

ESOP trustees are compelled to consider specific steps to help manage their fiduciary liability. Review those steps here.


Introduction to ESOP Video wins Gold Quill Award!

May 5, 2016

Our Introduction to ESOP video has won a Gold Quill award from the International Association of Business Communicators.
 

Forfeitures - To Restore Or Not To Restore? That Is The Question!

Apr. 6, 2016

Here are some questions and answers to get you started on investigating your defined contribution plan's forfeiture restoration provisions.
 

Matching Contributions in Your ESOP: Things You Should Know

Mar. 25, 2016

Did you know you can add a matching contribution provision to an existing ESOP allowing the employer to match employee deferrals in company stock? Many ESOPs choose to do just that for a variety of reasons.
 

ESOP Repurchase Liability With No Surprises

Mar. 20, 2016

The enhanced My Principal ESOP Repurchase Liability Solution® (My PERLS® 2.0) enables ESOP clients of Principal to project repurchase liabilities and provides yet another way to help ease their ESOP fiduciary responsibilities with repurchase liability forecasting.
 

ESOP Repurchase Liability – A Funding and Fiduciary Obligation

Mar. 14, 2016

Repurchase obligation is the liability a company incurs when terminated participants are entitled to receive distributions from an ESOP. How and when payment is due varies by plan design, specifically the timing, method, and form of distributions defined in the ESOP document.
 

Ask an ESOP Consultant

Mar. 14, 2016

Find out some insight and answers to a question posed to our ESOP consultants.
 

Required Minimum Distributions (RMDs)

Mar. 10, 2016

With proper ESOP repurchase liability planning, a plan sponsor can avoid or at least be prepared to manage a situation where the ESOP doesn’t have enough cash available to pay its RMDs. Another approach would be to have a well-designed ESOP distribution policy.
 

ESOP Loan Terms – How Long Should They Be?

Mar. 8, 2016

How should a plan sponsor decide the term of an ESOP loan? Review employee benefit considerations, financial considerations, and external factors.
 

The “Trickle-In” ESOP

Jan. 15, 2016

A "trickle in" ESOP strategy can accomplish the goal of getting stock into the accounts of employees but often at a fraction of what it costs to implement a more complex leveraged ESOP transaction.

 

Guidelines for Communicating a Second Stage Transaction

Dec. 17, 2015

Many ESOP transactions occur at or near the end of the year.  Follow these guidelines for communicating a second stage transaction.

 

Employee Stock Ownership Plan (ESOP) News Diversification Information Recently Discussed by the IRS

Nov. 2, 2015

Recent information from the Internal Revenue Service (IRS) has provided some needed insight on the ESOP diversification rules that can help ease some of the timing pain experienced in this area.
 

Communication is Key to the Life – and Success – of Your ESOP

Oct. 19, 2015

Effective communication when delivering ESOP mesages is important because it supports employee awareness, engagement, and an overall understanding of the ESOP.
 

Humble Roots: A Co-Ownership Story

Oct. 15, 2015

When Odell Brewing Company decided to implement an ESOP, it was all about making a co-ownership culture – reality.
 

Achieving Sustainability in an ESOP Company

Oct. 12, 2015

Sustainability is the ability to thrive as a viable business entity, whether as an ESOP owned company or in another form of ownership.

 

Re-Evaluating Your ESOP

Oct. 5, 2015

When a mature ESOP begins to pose potential challenges, there are several alternatives for bringing the ESOP back in sync.

 

Help Your Employees Take Notice of an ESOP Through Communication Campaigns

Sept. 10, 2015

ESOP is an investment in the future of the company, you can harness its power to help benefit both the company and the employees.

 

Advocating for Your Retirement

Sept. 8, 2015

Participation in regional and national ESOP conferences is a part of a continuous effort to expand our depth of industry knowledge and better serve our clients.

 

Culture Connection - How Your Committee Can Help

July 20, 2015

Communication committees can help employees embrace their role in an employee-owned company.

 

Subchapter S Corporation Cost Basis

July 1, 2015

Answers regarding how the Subchapter S Corporation Cost Basis should be adjusted in an ESOP.

 

Determining the Feasibility of an ESOP

July 1, 2015

Completing a feasibility study can help to make informed decisions.

 

Are Your Employees Retirement Ready?

July 1, 2015

How an employer can help ensure retirement readiness among its employees.

 

Get Engaged with an Emotional ESOP

April 1, 2015

Engaging employees isn't quick or easy - but it is totally possible, learn more here.

 

Can ESOP Companies Continue to Hold Employer Stock?

April 1, 2015

What are the due diligence requirements of ESOP fiduciaries and company Board of Directors following 2014 Supreme Court findings?

Ask an ESOP Expert

Share your ESOP questions directly with the Principal ESOP experts. We'll help find an answer. 

ESOP Insights

Gain insight and perspective from the Principal® ESOP team. Updates are posted several times a month.

My PERLS® 3rd Quarter Basics Walkthrough Webinar

Join us on Aug. 9 at 2 p.m. CDT to review the new My PERLS 2.0 enhancements with the same great quarterly training you've come to expect.

Upcoming Conferences

Connect with us at a conference. Our ESOP consultants actively advocate for our clients by attending and presenting at regional and national conferences.

Think you know ESOPs?