ESOP Transaction
Trustee Services

Navigate the pivotal moments of an ESOP transaction with the dependable guidance and clear insights of Aegis Trust Company.

Making fiduciary decisions to acquire the stock of the company from its owners.

What Does an ESOP Transactional Trustee Do?

An ESOP requires an expert fiduciary to represent the interests of the ESOP participants in various transactions such as ESOP purchases, redemptions or sales to third parties. Its role is to manage the transaction on behalf of the participants, ensuring the share price is at fair market value and that the deal is structured in the best interest of the participants.

Ready to make an ESOP transaction? We can help!

Our Role as an ESOP Transactional Trustee

When we are appointed as an ESOP Transactional Trustee, we are responsible for making fiduciary decisions that are in the best interest of plan participants. If the ESOP is just being formed, we acquire the stock of that company from its owners. If the ESOP is being terminated or sold, we ensure that fair market prices are upheld.

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Independent Third-Party Perspective

To avoid conflicts of interest by appointing a transactional trustee who works at the company, it is recommended that trustees be independent of the company (even though this is not a legal requirement). Aegis brings that trustworthy, third-party experience to the table.

Deep Knowledge of the Department of Labor Standards

Aegis’s experienced team of professionals follows a proven, rigorous internal process that surpasses its competitors. Our processes far exceed the standards imposed by the Department of Labor, ensuring that Aegis fulfills its fiduciary duties to the employees.

Qualified to Handle ESOP Transactional Trustee Responsibilities

ESOP transactions are highly detailed and complex; therefore, it’s important to have a qualified partner to handle every detail. Our ESOP transaction trustee services have been extended to hundreds of companies across a wide range of industries.

Client Feedback

Hear firsthand accounts of how Aegis has transformed businesses and empowered employees through ESOPs

Taylor Johnson

"Aegis is a true partner in our success. Their tailored ESOP solutions have driven our organization's growth and innovation, making our journey into employee ownership truly transformative."

Morgan Smith

“Thanks to Aegis, our transition to an ESOP was seamless. The entire process was expertly managed, and now, as co-owners, our team feels more motivated and connected than ever before.”

Jordan Williams

“Aegis made employee ownership a reality for our small business. Their guidance and support have not only increased our company's value but also our employees' satisfaction and financial security.”

We believe in the transformative power of ESOPs for business owners, employee owners, and society at large.

Committed to
Your Success

As you navigate your company’s ESOP journey, we want to be your trusted consultant. Our exclusive focus on ESOPs mean we have a team that’s dedicated solely to the best interests of all ESOP participants.

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Rigorous Compliance
We adhere to all regulatory requirements for ESOPs, often surpassing current regulations.
In-House Services
Our team includes experts in every area of ESOP transaction trustee services.
Steadfast Support
Aegis is committed to protecting and guiding ESOPs.
Have Questions?

Dive Deeper

Get all your questions answered on our Frequently Asked Questions page.
Read More FAQ

What is an ESOP?

An Employee Stock Ownership Plan (ESOP) is an employee benefits program that empowers employees to own a piece of the company they are helping to build. In an ESOP, employees acquire company stock as part of their retirement package, which is often tied to vesting and rewards longevity with the organization. Companies that utilize ESOPs are often more productive and enjoy a positive, collective internal culture. ESOPs are also a great recruiting and retention tool. 

How do employees acquire shares in an ESOP?

Employees who participate in a company’s ESOP receive an allocation of shares. When an ESOP is first formed, a trust fund is set up. The fund is comprised of newly issued shares and/or cash to purchase existing shares which, once purchased, go back into the trust. Shares of company stock are allocated to each participant’s individual ESOP retirement plan account every year. Read more on this topic in our comprehensive blog.

Are ESOPs a retirement plan?

Yes, Employee Stock Ownership Plans are a type of retirement plan that empowers employees to own a piece of the company they are helping to build. When participants leave the company or retire, they are able to request a distribution from their account if they have met vesting schedule requirements. ESOP distributions are cash payments based on the current fair market value of the shares in the participant’s account at the time of distribution. The former employee receives cash and the shares are sold back to the ESOP sponsor, going back into the trust fund to be reallocated to remaining participant accounts. Keep reading about this topic in our blog.

Are ESOPs suitable for all types of companies?

While ESOPs are implemented in companies across diverse industries, they may not be suitable for every business. ESOPs are available only to C-Corporations and S-Corporations. They are not recommended for start-ups and small businesses. Furthermore, there are cash flow requirements that must be met, which limits what is available for reinvestment in the company.

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Learn more about how we can partner with you and your organization as your ESOP transaction trustee.

Tomorrow starts here. Choose Aegis.

ESOPs offer diverse benefits that create a thriving work environment and a lasting legacy.