An ESOP is a kind of employee benefit plan, similar in some ways to a profit-sharing plan. In an ESOP, a company sets up a trust fund, into which it contributes new shares of its own stock or cash to buy existing shares.
Alternatively, the ESOP can borrow money to buy new or existing shares, with the company making cash contributions to the plan to enable it to repay the loan.
Regardless of how the plan acquires stock, company contributions to the trust are tax-deductible, within certain limits.
Regal designs, administers and manages the trust fund on behalf of sponsoring companies and their employees. We manage the cash and borrowings acquired into the trust fund to preserve and/or grow its value.
