SOME ESOP FABLES – DEBUNKED Since 1974 when Congress first created the tax incentives for employees to become shareholders with the creation of Employee Stock Ownership Plans (ESOP), nearly 14 million employees own stock in over 7,000 companies through ESOPs. It ranges from companies as large as Publix Supermarkets with over 190,000 employees to relatively small companies with just $1 million in annual payroll. Despite the growing popularity of ESOPs and the significant tax advantages many misconceptions exist so it’s difficult for a business owner to make an informed decision about setting up an ESOP for their company, and its employees. Let me attempt to dispel ten common misconceptions, or fables, about ESOPs. ESOP Fable #1: It would be easier just to sell my company to a third party . Business owners frequently hold the belief that “When the time comes to retire, I will just sell my company to an interested buyer.” As if that’s all there is to it....