SERVICES

The Trustee is the legal owner of the shares in an ESOP company and has a duty of loyalty to act solely in the best interest of the ESOP participants. The Trustee is a named fiduciary under ERISA and must act with the highest standards of care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity aims. The objective of the Trustee is to assure participants and their beneficiaries receive the greatest possible retirement benefits.  

ESOP Transaction Services

Responsibilities

 

  • The Trustee acts as the buyer in an ESOP transaction, prudently evaluating the potential purchase of employer securities for new and existing ESOPs

  • 100% company acquisitions, partial and second-stage transactions

  • Engage an independent qualified appraiser for transaction valuation

  • Oversight of valuation advisor

  • Perform thorough due diligence

  • Analyze financial statements and critically assess reasonableness of projections

  • Document analysis of final valuation report

  • Negotiate stock sale terms and price on behalf of the ESOP Trust and Plan participants

  • Comply with ERISA fiduciary duties and avoid prohibited transactions

  • Thoroughly document the entire process

Ongoing Annual Trustee Services

Responsibilities

 

  • Hire independent qualified advisors

    • Including independent qualified appraiser, reporting solely to the Trustee

    • Determine qualifications and insure there are no conflicts of interest

  • Establish annual ESOP share price

    • Duty to review valuation report with a critical eye, ask questions and verify assumptions

  • Act as a shareholder, including: being informed, voting stock and evaluating offers

  • Follow ESOP Plan documents

  • Elect and monitor Board of Directors

  • Ensure ESOP complies with laws, regulations, and guidelines

  • Oversee distributions to participants as directed by Plan Administrator