Employee-stock-ownership-plan

ESOPs are a boon or a boondoggle to a company. This book is thorough in the research involved in considering, completing and sustaining an ESOP. It is must reading for the owner considering an ESOP and for ESOP employee/owners. It clearly defines the pros and cons for the pre-ESOP owners, for the post ESOP majority owners and for the post ESOP minority employee/owners. Well researched, well written book. Very dry and technical, however, that is the nature of the subject.

Collaboratively written by Ron Bernstein, David Binns, Marshal Hyman, and deftly edited by Martin Staubus, Transitioning Ownership in the Private Company: The ESOP Solution examines leveraged employee stock ownership plans (ESOPs) as a means of allowing employees to purchase and own a corporate divestiture or a production plant or facility chosen for closing by the parent company. Examining the tax benefits, empowerment benefits for employees, usefulness, and facilitation of ESOPs, Transitioning Ownership In The Private Company is a carefully researched, superbly presented, and thoroughly "user friendly" information guide and reference. Simply put, Transitioning Ownership In The Private Company is a "must-read" for anyone involved in or considering an ESOP solution in acquiring a private company, plant, or facility.

This book masquerades as a comprehensive guide to developing a stock option plan. In truth, it is a very basic overview of some of the topics surrounding stock option plans. When it attempts to walk through how one would actually go about creating a plan, it uses a hypothetical company and an executive named "Charlie". Sadly, whenever Charlie comes to difficult questions, no answer is given. For example, when discussing the question of valuing stock in a private company, the author's answer is to hire an outside consultant....Gee thanks! Beyond the single basic example give, no discussion of how or why certain decisions are to be made and rationalized. Another great example of this is in determining the number of shares to grant to employees and management. The answer given in the case study is that Charlie had "no process to determine these numbers"....wow, really insightful advice.....No plan at all, so when the executives ask you how you came up with the grant allocations, you can just tell them that you winged it, just like Charlie.

As you can tell, the authors couldnt even tackle simple issues like how many shares to grant, or the appropriate strike price,
and this is not even to mention REAL issues like compensating employees whose options are underwater. I guess Charlie didn't have this problem. I am totally embarassed to have bought this book, save your money and search the web for real-world advice.