One of our Senior Managing Director and CPAs, Marcus R. Piquet, gives a presentation at the Manufactures’ Council of the Inland Empire (MCIE) located at the Fontana California on ESOPs as an Ownership Success Vehicle.
In this video, Marcus explains Employee Stock Ownership Plans (ESOPs) and how they function as a powerful employee benefit and ownership strategy. An ESOP is an ERISA-governed defined contribution retirement plan, formally recognized in 1974, that is designed to invest primarily in company stock. Unlike traditional retirement plans such as 401(k)s, ESOPs are fully funded by the company, require no employee contributions, and give employees a direct ownership stake in the business.
Marcus also outlines what makes ESOPs structurally unique, including their ability to borrow funds to purchase shares from business owners, enabling succession planning, liquidity, and tax-advantaged ownership transitions. He highlights well-known ESOP-owned companies across multiple industries (such as Holden Industries, Clif Bar, and Schweitzer Engineering) and emphasizes the strong cultural alignment ESOPs create—particularly in craft breweries, where employee ownership supports independence, quality, and long-term sustainability. ESOPs, Marcus notes, are especially effective for companies focused on employee engagement, retention, and legacy preservation.