What is an ESOP?

GGMF will utilize current legislation to support the establishment and funding of Employee Stock Ownership Plans (“ESOP”).

An ESOP is a method of transferring shareholding in a company to the employees and is classed in the US as a retirement plan where the ownership of the company is held in trust for the benefit of the employees of the company.  

The Trust buys shares in the company on behalf of the employees and would normally utilize the profits of the company to pay off the loan used in the purchase. Effectively, this means the employees don’t pay out of their wages or income, but gain ownership in the company as a result of their work. Because of this, an ESOP is much more than a retirement plan.

There are several organizations which provide helpful information on the establishment and operation of ESOPs and they are:

• The National Centre for Employee Ownership
• The ESOP Association

GGMF will also provide financial support to the Employee Trusts whose “linked” companies opt to implement an ESOP and transfer a minimum of forty percent (40%) of the equity to the ESOP, Employee Trust.

Full details of the Benefits available to Corporates and Employee Trusts can be found here.