Advertisement

ESOPS pp 90-110 | Cite as

Financing ESOPs: ‘The Banker’s Perspective’

  • Peter Fanning
  • Robert Addison
  • Robert Vartevanian
Part of the Finance and Capital Markets Series book series

Abstract

ESOPs are about the relationship between employees and their employing company. A company’s decision to establish an ESOP may be influenced by corporate finance issues. However, a company may choose to deliver shares to employees for its own commercial reasons irrespective of other considerations. The decision to establish an ESOP involves many components. A bank might be involved at the early stages, say, when the ESOP is being compared with other techniques for managing employee relations or at the final stages when the question outstanding is the price for ESOP finance. The wider issues are considered elsewhere in this book. This chapter is restricted to the financing of an ESOP Trust by a bank and focuses on the lending banker’s perspective.

Keywords

Share Price Corporate Finance Strike Price Lending Bank Employee Share 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 1992

Authors and Affiliations

  • Peter Fanning
    • 1
  • Robert Addison
    • 1
  • Robert Vartevanian
    • 1
  1. 1.National Westminster Bank PlcUK

Personalised recommendations