ESOPs:
What They Forget to Mention…
Employee Stock Ownership Plans (ESOPs) can be a great exit strategy for a business owner who wants to reward the staff who have helped them build their company, or who need to create a buyer for their company. In past XPX meetings, we’ve had a couple presentations about the benefits of ESOPs.
However, not every ESOP exit turns out to be a smooth ride for the company, especially after the original owner leaves. Please join us for a fascinating panel discussion of some of the less well known aspects of ESOPs, including: dealing with ERISA compliance issues, plan discrimination testing and potential excise tax penalties, the cash flow burden of leveraged ESOP transactions, and dealing with ESOP shareholders when the company faces financial challenges. Our panel includes the CEO of a 100% employee-owned ESOP company, an experienced ESOP attorney, and a manager at an ESOP third-party administration provider.
Our Panel:
Tim Vigotsky - Chief Executive Officer, Kelly, Anderson & Associates, Inc. (KAA)
Tim Vigotsky has an extensive background in agency operations, professional consulting and financial services, he has responsibility and oversight for all operations of Kelly, Anderson and Associates, Inc. (KAA), including both its government and commercial divisions. Tim focuses on the proper execution of KAA’s business model of providing superior professional work to clients while maintaining a corporate culture that gives Associates rewarding, flexible careers and work-life balance. Additionally, Mr. Vigotsky leads the Commercial Services division where he provides strategic planning, business development and client services. KAA is 100 percent employee owned.
Mr. Vigotsky holds a Bachelor of Science degree from George Mason University where he graduated with honors and graduated from Harvard University’s, Kennedy School of Government. Mr. Vigotsky is currently a member of Kennedy School’s Career Services Alumni Board.
Tom Roback - Managing Director, Blue Ridge ESOP Associates
Tom Roback has worked in the accounting, investment and ESOP industry for over 26 years and is a Managing Director at Blue Ridge ESOP Associates. He is an expert in ESOP, 401(k) and equity compensation administration. He is a Qualified 401(k) Administrator (QKA), Certified Equity Professional (CEP) and the Immediate Past Chair on the Board of Directors for the National Center for Employee Ownership (NCEO). Tom is also the Vice President-Membership for the ESOP Association’s Mid-Atlantic Chapter and the Secretary for the Central Virginia Employee Benefits Council (CVEBC). He is a member of The ESOP Association, American Society of Pension Professionals & Actuaries (ASPPA), Employee-Owned S Corporations of America, Exit Planning Exchange, and the NCEO. Tom received his Master of Business Administration from the University of Baltimore and a Bachelor of Science in Accounting from the College of William and Mary.
Ben F. Wells - Partner, Washington office of Dinsmore & Shohl
Ben F. Wells is a Partner in the Washington office of Dinsmore & Shohl, a national law firm with approx. 600 lawyers spread across the country. Ben heads the firm’s Tax, Benefits and Wealth Planning Practice Group. His practice includes counseling ESOP trustees, fiduciaries, sponsors and lenders, and advising business owners on the use of ESOPs as a tool of business planning and succession.
