Mature ESOPs often confront issues such as high repurchase obligation, “haves vs. have nots,” contribution limits, and appropriate benefit levels. Could these issues be addressed by "releveraging" your ESOP (i.e. having the ESOP purchase new shares with an acquisition loan)? What are the "pros" and "cons" of a releveraging strategy? Are there other methods to address issues being faced by mature ESOPs? This session will discuss what "releveraging" really means and identify key considerations to help you to determine whether releveraging will work for your ESOP. NCEO Resource: The ESOP Repurchase Obligation Handbook
Learning Objectives:
Understand what is meant by the term "releveraging"
Recognize the pros and cons of releveraging
Learn alternative methods to address mature ESOP issues
