What is an ESOP Trustee?

The Trustee legally holds the shares of an ESOP company and is obligated to prioritize the ESOP participants' best interests with a steadfast duty of loyalty. As a designated fiduciary under ERISA, the Trustee is required to uphold the utmost levels of care, skill, prudence, and diligence, comparable to what a prudent individual in a similar role would exhibit under the current conditions. The Trustee's goal is to ensure that participants and their beneficiaries achieve the maximum retirement benefits available.

Why retain an independent trustee?

Independent trustees ensure that companies and employees have a dedicated partner they can trust. Client of Alcyone enjoy the benefits of:

1) Expert guidance; With 25+ years combined partner experience, we know our ESOPs. Because we provide the full breadth of ESOP fiduciary services to companies spanning dozens of industries and across many states, we have the depth of knowledge to ensure that your plan is given the highest standard of oversight and care. Whether you are considering becoming an ESOP, preparing for the sale of your ESOP-owned company, or managing your suspense account, we have your needs covered.

2) Dedicated support; Running your business requires constant focus and dedication ‒ Shouldn’t you do the same for your ESOP? Alcyone clients rest easy knowing there is a dedicated trustee overseeing their plan ‒ managing all aspects of the valuation process end-to-end and providing them with the by-the-book documentation, accessible feedback, and detail-oriented compliance that they need.

3) Trust & safety; We’ve got your back. You’ve done an incredible job building a company that provides value for your employees and your community. Now, let Alcyone be the partner you can trust to keep your most precious asset safe. Our goal is simply to provide you with the most reliable fiduciary care, so that your business can continue to thrive – 100% worry-free.

What makes Alcyone Trustee different?

We began Alcyone with the goal of filling a void within the ESOP-owned fiduciary space for highest quality fiduciary services for SMBs. We are unique in several respects:

1) Our dedication and focus on SMBs; at Alcyone we focus on small to mid-sized businesses—always have, always will. Our depth of expertise and commitment to making ESOP and ESOP fiduciary services affordable and flexible to the clients we serve is our north star.

2) Our commitment to boutique and hands-on client service; unlike big-box trustee service firms whose focus is on scaling to countless clients, Alcyone has a commitment to only taking on the number of clients whom we can serve with the highest standard of dedication and quality.

3) Our depth of understanding of ESOPs, ERISA compliance, and corporate finance including M&A/LBOs; an employee-owned business is an active, thriving enterprise like any other. An ESOP-owned company will go through many different changes, challenges, and opportunities from inception to potential exit. At Alcyone, we have the knowledge and experience to serve our clients from “cradle to grave;” helping them manage their ESOP obligations prudently, preserve/unlock value, and achieve their dreams by providing them with all of the data and analysis, guidance, and support they need to chart the best course and stay compliant.

What does Alcyone Trustee charge companies for its services?

Alcyone charges different fees for its transactional, ongoing trustee, and strategic advisory services. Generally, Alcyone charges on a sliding scale depending on the size of the company. Overall, Alcyone is an organization that was founded with a commitment to making ESOPs an affordable proposition for companies of any size and therefore seeks to offer pricing that is not only highly competitive in the market but also sustainable and economic for the client.

Does Alcyone Trustee have insurance coverage?

Alcyone Trustee has full D&O insurance coverage and does not charge clients for its liability coverage.

I am not currently an ESOP-owned corporation—how can I become one?

Alcyone provides only trustee and fiduciary services to ESOP companies and cannot advise companies on whether or not they should ESOP or provide guidance on structuring an ESOP transaction. However, Alcyone is committed to the growth of employee-ownership and happy to provide referrals to advisors who can help companies seeking to ESOP learn more about the structure.