Tell a Friend


Strategies to Deal with ESOP Repurchase Obligation
   LIVE Webcast  


Event Details:                                                                                                                                                          

Handling ESOP repurchase obligation is not easy. Appropriate planning is needed to make ESOP repurchase obligation a lot manageable whilst minimizing its impact on the firm’s stock value.

The Knowledge Group has assembled a panel of distinguished experts to help you navigate through the thorny process of ESOP Repurchase Obligation. Our speakers will offer strategic ways on how to handle ESOP repurchase obligation. In addition, they will also provide practical guidance in designing a plan to make the repurchase obligation convenient, projecting repurchase obligations and dealing with legal issues. The program will cover the topics above along with a Q&A panel in which the attendees will be invited to ask the speakers questions.

Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Group, LLC
Recommended CLE/CPE Hours: 1.75 - 2.0
Advance Preparation: Print and review course materials
Course Code: 124309
Recording Fee: $299 (Please click here for details)


Featured Speakers for Strategies to Deal with ESOP Repurchase Obligation LIVE Webcast :

Agenda  (click here to view more)

Tim Jochim, Director,
Kegler, Brown, Hill & Ritter Co, LPA

  • I. Importance of Repurchase Obligation.
    • A. Effective management of repurchase obligation will determine whether or not the ESOP business model is short-term or perpetual.
    • B. April, 2007, survey by NCEO on ESOP terminations indicated repurchase obligation was a major factor for 67% of companies and sale of company was a major factor for 45% of companies.
  • II. Legal Basis of Repurchase Obligation.
    • A. The legal obligation of corporation under ERISA and the Code to maintain a market for any of its securities held by any qualified plan sponsored by the corporation.
    • B. Prudence and exclusive purpose requirements of ERISA section 404(a)(1), the “adequate consideration” requirement of ERISA section 408(e).
    • C. Code section 4975(e)(2) fair market value requirement, the 409(h) "fair valuation formula "requirement, and the 401(a)(28)(C) independent appraiser requirement.
  • III. Financial Basis of Repurchase Obligation.
    • A. Lagging drag effect upon company cash flow (phrase initiated by David Light).
    • B. Market clearing concept relating company value to repurchase obligation.
    • C. Recycle strategy: proportionate reduction to company value and value per share with offset by tax shield.
    • D. Redemption strategy: significant reduction to company value (no tax shield offset) with no change to value per share.
    • E. Valuation adjustments include discount for lack of marketability (“DLOM”), discount for lack of liquidity (“DLOL”) and net cash flow adjustment in CCF or DCF.
  • IV. Distribution Tools for Managing Repurchase Obligation.
    • A. Five year delay for distribution commencement for terminations other than Big 3 (death, disability and retirement).
    • B. Statutory diversification election out of stock account: 25% at age 55 with 10 years of participation and 50% in year 6).
    • C. Early conversion into cash for stock accounts not held by employees (aka, reshuffling).
    • D. Substantially equal annual installments not to exceed five years (can be longer to extent annual installments exceed $200,000).
    • E. Insolvency limitations under applicable state corporation law.

Gregory K. Brown, Partner,
Katten Muchin Rosenman LLP

** Speaker Talking Points to be added soon.. **

Daniel P. Callanan, Director,
Western Reserve Valuation Services

** Speaker Talking Points to be added soon.. **

Stephen A. Martin, SVP, Manager, ERISA Special Fiduciary Services & Fiduciary Administration,
Reliance Trust

** Speaker Talking Points to be added soon.. **

Kegler, Brown, Hill & Ritter Co, LPA
Tim Jochim
speaker bio »»

Katten Muchin Rosenman LLP
Gregory K. Brown
speaker bio »»

Western Reserve Valuation Services
Daniel P. Callanan
speaker bio »»

Reliance Trust
Stephen A. Martin
SVP, Manager, ERISA Special Fiduciary Services & Fiduciary Administration
speaker bio »»

Who Should Attend?

- CFOs
- Financial Officers
- Employee Benefits and Executive Compensation Practicing Lawyers
- Compensation and Benefits Consultants
- Stock Plan Consultants
- HR Executives
- Benefits Managers

Why Attend?

This is a must attend event to everyone interested in learning the strategies to deal with ESOP repurchase obligation.
- Detailed guidance explained by the most qualified key leaders & experts
- Hear directly from key regulators & thought leaders
- Interact directly with panel during Q&A

Enroll in this course today by clicking the Register button below. Hurry as space is limited and deep discounts apply for early registrants.

Registration Information:                                                                                                                                    

(Click here for information on group registrations and discounts)

Please note, the event date is firm although it may be subject to change. Please click here for details.
The Knowledge Group, LLC is producing this event for information purposes only. We do not intend to provide or offer business advice. The contents of this event are based upon the opinions of our speakers. The Knowledge Congress does not warrant their accuracy and completeness. The statements made by them are based on their independent opinions and does not necessarily reflect that of The Knowledge Congress' views. In no event shall The Knowledge Congress be liable to any person or business entity for any special, direct, indirect, punitive, incidental or consequential damages as a result of any information gathered from this webcast.

























Strategies to Deal with ESOP Repurchase Obligation
LIVE Webcast
Event Sponsors

Kegler, Brown, Hill & Ritter is a full-service corporate law firm based in Columbus, Ohio. With a renowned practice in Business Succession and ESOPs, the firm has developed a reputation for representing private companies and their owners in all aspects of succession planning. Business succession at Kegler Brown is a comprehensive, dynamic and integrated system of business solutions that includes management succession, executive compensation, merger/acquisition, ownership transfers, tax reduction and estate planning.

Katten Muchin Rosenman LLP offers an extensive range of legal services across numerous industries, our core areas of practice are corporate, financial services, bankruptcy and creditors’ rights, litigation, real estate, commercial finance, intellectual property and trusts and estates. The firm has a uniquely flexible and entrepreneurial culture that fosters partnerships with our clients. Knowing the law is not enough. We understand our clients’ business objectives and address their legal needs in a manner that is consistent with the big picture. We have earned a reputation for being trusted business advisors, and we demonstrate our value every day in the successful results we achieve.

Western Reserve Valuation Services LLC, based in Columbus, Ohio, is a leading provider of valuation services and financial opinions relating to corporate finance transactions, corporate tax planning and compliance, succession planning and wealth preservation, employee stock ownership plans ("ESOPs"), financial reporting and portfolio / fund valuations. Western Reserve Valuation Services is an affiliate of Western Reserve Partners LLC, a FINRA-member investment banking firm offering financial advisory services relating to mergers and acquisitions, capital raising and financial restructuring.

Speaker Firms:

Reliance Trust


The Knowledge Group, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Website:


We are an approved multi-event sponsor in the state of California. Our provider ID is: 14451. In Texas, Illinois, and Virginia, we submit programs for individual approval in advance. In all other states, once attendance is verified, participants are emailed an official certificate of attendance which they submit to their respective State Bar Associations. Our programs are created with continuing education in mind and are therefore designed to meet the requirements of State Bar Associations. The State Bars will have the final determination on whether to provide credit or not. If you have any questions, please email our CLE coordinator at:

Attention New York Attorneys:

This program is approved for CLE credit under New York’s Approved Jurisdiction policy. The Knowledge Group, LLC is an approved sponsor in the state of California, a New York Approved Jurisdiction. This program fulfills the non-traditional format requirement of exceeding 60 minutes in length. Please note only experienced attorneys (more than 2 years) are eligible to receive CLE credit via non-traditional format learning platforms. The Knowledge Group will verify attendance during the webcast via secret words (3 per credit hour) and by auditing attendees log in and log out records. All verification instructions will be provided during the webcast. Once attendance verification requirements have been completed, the attendee will be issued a certificate of attendance be The Knowledge Group for the course with the recommended number of credit hours. The Certificate of Attendance is normally sent via email in 24 hours or less.

To Claim Your CLE Credits:

The attorney should simply include credits earned via Knowledge Group webcasts when computing the total number of CLE credits completed, and keep the Knowledge Group Certificate of Attendance for a period of at least four (4) years in case of audit. An attorney may count towards her/his New York CLE requirement credit earned through the Approved Jurisdiction policy without notifying the CLE Board.

To learn more about New York’s Approved Jurisdiction policy. Please visit:

Enrolled Agents Sponsor ID Number: 7602U

We have entered into an agreement with the Office of Professional Responsibility, Internal Revenue Service, to meet the requirements of 31 Code of Federal Regulations, section 10.6(g), covering maintenance of attendance records, retention of program outlines, qualifications of instructors, and length of class hours. This agreement does not constitute an endorsement by the Office of Professional Responsibility as to the quality of the program or its contribution to the professional competence of the enrolled individual.