Fifth Third Bank

Employee Stock Ownership Plans

A succession plan that can benefit business owners—and employees.

For many business owners, an ESOP may be the best solution for developing a succession plan, while generating potential tax advantages and providing employees with the incentive to coalesce into a strong management team. 

For your employee stock ownership plan needs, contact Alan Carlyle, Managing Director, ESOP Finance, Vice President—Employee Stock Ownership Plans at 313-230-9721 or Alan.Carlyle@53.com.

How an ESOP Works

With an ESOP, a company creates a trust for the employees and allocates shares to eligible employees’ accounts, which are subject to vesting requirements. Normally, ESOP participants receive the stock, or cash equal in value to the stock, after they leave the company or upon retirement.

When an ESOP borrows money to buy company shares, it is called a leveraged ESOP. The ESOP may own any percentage of the company’s shares, and shares may come from the company and/or the selling shareholders.

Why consider an ESOP?

  • Establishment of a succession plan
  • Potential tax benefits
  • Diversification of net worth
  • Increased liquidity
  • Employee compensation

At Fifth Third, we provide expertise and flexibility in constructing ESOP solutions, which include:

  • Leveraged ESOP
  • Non-leveraged ESOP
  • Full and partial sale
  • Second stage transactions
  • Seller note refinance

One bank for your needs

We support a variety of services for businesses looking to improve multiple aspects of their finances through the convenience of one bank that you can value and trust.

Explore all that Fifth Third Commercial Banking has to offer.

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