Incentive Strategies for Employee Stock Ownership Plan-Owned Companies.

In the current environment of rising income taxes and aging business owners from the baby boom generation, employee stock ownership plan (ESOP)-owned companies are likely to continue to grow in popularity. Executive talent has become highly mobile, and ESOP-owned companies in particular must seek out reward and retention programs that go beyond the mere granting of stock options and restricted stock. Both split-dollar life insurance and nonqualiied deferred-compensation plans have features that serve as alternative executive beneit arrangements. [ABSTRACT FROM AUTHOR]