>My family could have been a lot wealthier if he had kept a cut of the company. Unlikely... He probably made just as much or more with the ESOP than he would h

>My family could have been a lot wealthier if he had kept a cut of the company. Unlikely... He probably made just as much or more with the ESOP than he would have selling in a private sale. When a business owner creates an ESOP for their business they sell their shares of to the company to the company itself TAX FREE for a fair independent valuation. It's just another way for a founder to cash out. It absolutely does benefit the employees, but it's not an act of charity, the owner still cashes out and realizes the full valuation of the company they built. https://www.forbes.com/sites/darrendahl/2016/07/07/if-you-dislike-paying-taxes-youre-going-to-love-esops/ https://www.forbes.com/sites/darrendahl/2016/07/07/if-you-di...