Stock Bonus Plan
A stock bonus plan is a defined contribution profit-sharing plan where the employer contributes this instead of cash
What is employer (company) stock
The ESOP trustee is held to this standard and must act in participants' best interest or resign and appoint a neutral trustee
What is the fiduciary standard
SBP stock is allocated by a formula based on these two factors
What are compensation and service
An ESOP is set up as this legal arrangement to hold company stock for employees
What is a trust
SBP allocations must be this, meaning they can't unfairly favor certain employees
What is nondiscriminatory
A leveraged ESOP does this to buy company stock, and the company's contributions are used to repay it
What is borrow money
This must be done every year to determine what the stock in an SBP is worth
What is a valuation (annual valuation)
In a privately held company, employees vote only on these major events, and this person votes on all other matters
What are mergers, sale, and liquidation, and the trustee
SBP participants have this right, which forces the employer to buy their shares
What is a put option
An S corp with an ESOP can have no more than this many shareholders and only this many classes of stock
What are 100 and one?