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ESOP

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BettyBoop

Guest
I live in North Carolina. I have been working at my previous job for 12 years. Recently I decided to make a change. My employer says that I cannot receive my ESOP money until I have been away from my job for 5 years. Is this legal? Would it be advisable to get a lawyer to try to get my money? Would a lawyer even be necessary? Or is the company completely within its rights to keep my money for 5 years. That is an awfully long time. BettyBoop
 


S

so sue me

Guest
Steve - yes, the company can change their payment terms to the original language of the ESOP Charter. It should be clear in the ESOP Plan Summary that the ESOP has the right to change payment terms based on financial conditions of the company. Most competent employers won't make ESOP money available for immediate payout, because they're creating an incentive for employees to leave. In addition, the amount of cash required to continually repurchase stock can put a companies financial condition in jeapordy, and require additional trips to the bank to tap into lines of credit. Your only hope is the company is purchased by another larger organization and the employees agree to purchase terms that give you your stock immediately.
see ya.
sue me
 

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