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Employee Ownership Trusts (EOTs): An ESOP Alternative

Club E will be joined by Sue Crockett, Rick Plympton, and Christopher Michael to discuss Employee Ownership Trusts.

Selling to an employee ownership trust (EOT) should be considered as an alternative to an ESOP where the cost of an ESOP is a major consideration, as well as where perpetuity of the employee ownership structure is a major goal. The presentation will also include a discussion of wealth accumulation strategies in an EOT, valuation for an EOT sale, choice of EOT trustee, oversight under state trust law, transition of an ESOP to an EOT, and examples of EOT-owned companies. You will come away from this event with the "Why" to use an EOT instead of an ESOP, the "How" to transition to an EOT, and the "Where" to look for further guidance.

About our Panelists

Rick Plympton: Rick Plympton is the CEO of Optimax, a precision optics manufacturer in Ontario, NY. He has provided leadership and vision over the past 25 years needed to grow Optimax from a small start-up to America’s largest precision optics manufacturer. Rick recently initiated a corporate restructuring to effectively give the corporation to the employees via an EOT. Rick is actively involved in supporting regional workforce development and the optics industry. Rick holds degrees in business administration, computer science, and engineering science from Finger Lakes Community College. He furthered his education at the University of Rochester with a Bachelor of Science degree in Optics ’87 and an MBA ‘99.

Christopher Michael: Chris is responsible for developing the perpetual purpose trust as a new legal mechanism for employee ownership in the United States and has published articles introducing the concept in leading peer-reviewed law journals, including Tax Notes and Probate & Property. He is currently a professor at the Rutgers School of Management and Labor Relations and a senior fellow at the Rutgers Institute for the Study of Employee Ownership and Profit Sharing. Chris received his BA from Columbia University and earned his JD and PhD at the City University of New York with a dissertation on the history of employee-owned businesses in the United States. He is admitted to practice law in Minnesota, New York, New Jersey, North Dakota, and the District of Columbia, and serves as a consultant for businesses across the country.

Sue Crockett: Sue is the Executive Director of the MN Center for Employee Ownership (MNCEO) a non-profit organization created to educate business owners, advisors, community leaders, and members of local and state government entities on the benefits of employee ownership via Employee Stock Ownership Plans (ESOPs), worker cooperatives, and Employee Ownership Trusts (EOTs). It is the mission of the MNCEO to turn the state of Minnesota into a place where every working person can also be an employee owner.