White Paper / Risk Management
Surety Considerations for ESOPs
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Many companies face the decision of how to continue their companies when their CEOs retire. Some consider Employee Stock Ownership Plans (ESOPs) in order to cash out existing shareholders and allow employees to assume ownership of the company through contributions into an ESOP trust. Construction companies have historically used ESOPs less than other industries. But this is beginning to change. There are limited options for the succession of closely held businesses, and the implementation of an ESOP is a viable alternative.

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