Goldilocks and the Partial ESOPs

Tuesday, April 15, 2025

3:30 PM – 4:30 PM MST

Location: 251 ABC

CE: 1

CE Type: CLE, CPE, SHRM
Education Level: Intermediate

Joe Skorczewski, n/a

Managing Director
Chartwell Financial Advisory
Minneapolis, MN
Alex Neutgens

Director of Accounting and Finance
Bolton & Menk, Inc.
Mankato, Minnesota
J.D Lindberg

President
Resource Recycling Systems Inc
Edward C. Renenger

President & CEO
SES ESOP Strategies, a Stevens & Lee Company
Reading, PA

This session will explore a wide-ranging variety of considerations for companies that maintain partial ESOPs. While certain partial ESOPs are well-planned and perfectly accomplishing the desired outcome for all stakeholders, many partial ESOPs, especially over time, struggle to find their Goldilocks sweet spot in the world. This session will explore S corp distributions (on allocated and unallocated shares), tax savings, benefit level, repurchase obligation, discounts for lack of control, and ways to increase (or decrease) ESOP ownership to accomplish the dynamic goals and objectives of the organization.

Learning Objectives:

Understand the cash flow challenges associated with partial ESOPs.
Comprehend ownership philosophies to determine an optimal percentage of ESOP ownership.
List pros and cons of maintaining partial ESOP ownership.