ABRC-ESOP

Evan L. Rhodes: ESOPs are an effective motivational tool. With an ESOP, all employees, especially key employees, have adequate incentive to grow the business. Their beneficial interest in the ESOP is calculated based on their salaries as a percentage of overall payroll. The higher their salary the more beneficial interest they get in the ESOP. The better the business does, the higher the ESOP value becomes. These employees can potentially make more – as much as two to five times more – in the ESOP than their 401(k), without affecting take home pay.