{"id":3775,"date":"2015-05-08T14:35:29","date_gmt":"2015-05-08T18:35:29","guid":{"rendered":"https:\/\/www.stevenslee.com\/sesesop\/?p=3775"},"modified":"2026-07-22T13:59:57","modified_gmt":"2026-07-22T17:59:57","slug":"why-do-companies-and-shareholders-choose-esops-as-a-liquidity-and-succession-strategy","status":"publish","type":"post","link":"https:\/\/www.stevenslee.com\/sesesop\/resources\/why-do-companies-and-shareholders-choose-esops-as-a-liquidity-and-succession-strategy\/","title":{"rendered":"Why Do Companies and Shareholders Choose ESOPs as a Liquidity and Succession Strategy?"},"content":{"rendered":"

We like to think that shareholder\/entrepreneurs are really investors in their companies. While that is true by itself, it isn\u2019t the whole story.<\/p>\n

When I talk to a shareholder\/entrepreneur, I\u2019m not only talking to an investor. I\u2019m usually talking also to a key executive, board member (sometimes the sole board member), who has important relationships with his management team and employees, including family members in the business, as well as the community and the industry.<\/p>\n

The liquidity\/succession decision rarely gets made purely as an algebraic calculation of value and return. Most shareholder\/entrepreneurs want and insist on a \u201cfair\u201d return on their investment and their (life\u2019s) work. At the same time, many care deeply about other important outcomes, including their and their family\u2019s ongoing role in the business, as well their \u201clegacy\u201d in and through the company.<\/p>\n

For these shareholder\/entrepreneurs, ESOPs solve many problems, including:<\/p>\n