One of the biggest challenges facing a mature ESOP is the problem of the "haves vs. have-nots"—where longer-term employees have accumulated substantial ESOP accounts, but others (typically newer employees or lower-paid employees) have considerably smaller account balances. The issue is how to get shares into the hands of these "have-nots" to make the ESOP a meaningful benefit to all employees. This session will discuss how this situation occurs and offer suggestions on what tools can be utilized to remedy the situation. NCEO Resource: Sustainable ESOPs
Learning Objectives:
Determine the reasons that the "haves vs. have-nots" issue occurs in a mature ESOP and why it's a concern
List all of the solutions that are available to remedy the issue of the "haves vs. have-nots"
Understand how the various solutions discussed all work together to remedy the issue, as well as the pros and cons of each method
