Advantages of ESOP

Risk Isolation:
By utilizing a trust, companies can arrange their assets to mitigate potential risks, especially during economic downturns, to prevent loss of company assets. Trusts effectively isolate and protect assets.

Professional Asset Management:
Trustees possess professional qualifications in administration and asset management, along with a robust set of management systems. This helps regulate management practices and mitigate risks.

Enhanced Plan Flexibility:
Beneficiary lists can be flexibly supplemented or adjusted according to the agreements of the plan and trust. This ensures that company stocks/options remain unaffected while safeguarding the interests of the company, other employees, and beneficiaries.

Reduced Management Costs:
Companies can lower the costs associated with training management personnel, human resources, and unnecessary expenses for implementing the plan.