ESOPS and Preferred-Status Certification: Challenges and Opportunities for Employee Stock Ownership Plans and Business Preference Programs

Jul 24, 2017
  • Description

This paper outlines the core features of preferred-status certifications and of Employee stock ownership plans (ESOPs), and then explores the reasons for the tension between the two by using case studies and excerpts from laws and certifier policy statements. It makes recommendations for companies interested in exploring simultaneous certification and ESOP ownership and separate recommendations for certifying agencies that are considering changes to their policies with regard to ESOPs.