Company-wide Plans
Company-wide plans refer to employee ownership plans that generally provide significant tax advantages to the company if strict rules relating to participation are followed. Therefore, these plans are better suited to sharing ownership with a wide cross-section of the workforce.
These plans include:
 Employee Stock Ownership Plans (ESOPs)
ESOPS are tax-qualified, defined contribution retirement plans designed to be invested primarily in company stock. ESOPs enjoy unique and substantial tax advantages that offer important benefits to the company and its current owners. Benefits to the company include corporate tax deductions for both principal and interest payments on ESOP loans. For the owner(s), deferral or total avoidance of capital gains may be available for stock sold to an ESOP. ESOPs in S Corporations are exempt from federal taxation.
 Employee Stock Purchase Plans (ESPPs)
These plans are designed to allow employees to purchase company stock through payroll deductions, generally at a discount. These plans are best suited to publicly traded companies that want to encourage broad-based investment and equity participation.
 401(k) Plans and other Qualified Retirement Plans
Tax-qualified ERISA retirement plans, including the popular tax-deferred 401(k) plan, can be readily adapted to serve as employee ownership vehicles.
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