What incentives do companies use to recruit key employees? To retain them and motivate them to succeed? One such incentive is an Employee Share Ownership Plan (ESOP). This instrument may also comes into play for succession planning—and in creating a market for the company’s shares.
The benefits of ESOPs are many. This kind of ownership plan gives multinationals a common incentive for employees worldwide. ESOPs can also create a market for a parent company’s shares. Other advantages: ESOPs may be tailored to meet specific corporate objectives and companies can use existing (rather than new) shares, which prevents diluted shareholdings. ESOPs can also make share incentives tax-efficient for employees.
Intertrust works to alleviate the administrative burden of ESOPs. As part of our ESOP offerings, we provide your company with a cost-effective software package for managing the administrative tasks. This is a fully automated, web-based application that is globally accessible – to all management and plan participants. The software:
• Enables setting up and managing day-to-day ESOP administration
• Supports granting and exercising member participation
• Provides an exercise mechanism
• Gives you direct links with brokers and banks
• Allows access to Cash management services to all parties concerned
• Enables Custody services
• Handles compliance issues, including mandatory reporting to regulators
• Does full reporting at any frequency on the status of the plan, including the exposure eligible for hedging purposes
• Yields global access to the system 24/7
• Comes with a help desk for participantsESOPs can be an attractive solution for companies wishing to strengthen relationships with their people by providing share options. Intertrust does the planning, administration, management – and supplies the software – to implement secure ESOPs.