leveraged ESOP

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Leveraged ESOP

An employee stock ownership plan in which the sponsoring company borrows funds in order to purchase shares from itself, which it then distributes or sells to employees as part of their compensation. It repays the loan with annual contributions.

leveraged ESOP

An Employee Stock Ownership Plan that borrows funds to purchase securities of the employer.
References in periodicals archive ?
Leveraged ESOPs use debt to purchase all or a portion of the company stock.
Leveraged ESOPs, Wealth Transfers, and Shareholder Neutrality.
404(a)(9) more literally--as exempting leveraged ESOPs from Sec.
It has also facilitated other sales of businesses, leveraged buyouts, leveraged ESOPs and recapitalizations.
An ESOP also has special borrowing rights, which allow for leveraged ESOPs to be facilitated as a method for corporate finance.
Companies created leveraged ESOPs in the late 1980s and early 1990s, borrowing funds to purchase company stock.
The coefficient of this variable is insignificantly negative, which suggests that the positive coefficient of Leverage does not imply tax benefits of leveraged ESOPs.
Within the official estimate for fiscal year 1993, federal tax loss was the tax deducibility of principal repayment in leveraged ESOPs.
SOP 93-6 will put leveraged ESOPs or KSOPs on the same footing as non-leveraged plans.
Simple Concept, Intricate Analysis: The Use of Leveraged ESOPs to Provide Savings Plan Matching Contributions," Benefits Quarterly, Vol.
But after being involved with nearly a dozen leveraged ESOPs, here are some general observations.
Additionally, based upon feedback from partners, private equity sponsors now have an entire section devoted to them, highlighting items of interest such as leveraged ESOPs as an exit vehicle.