More and more HVACR business owners are realizing that an employee stock ownership plan (ESOP) — granting stock or shares of the business to employees — can increase employee retention, improve the actual work employees do, provide an exit plan for an owner, and reward employees who helped build the company.
An ESOP is different from a traditional corporate model. All employees (with the exception of some union members) are shareholders of the company, and it may not result in the most money an owner could get for their business if selling it for retirement. If a business owner is interested in an ESOP as a retirement plan, they must educate themselves on the benefits and challenges, look at the team they have in place, acquire the right counsel and advisors, and get their employees to buy into it.