Investments in Employer Stock
Defined Benefit Plans
Contributions of employer stock to a defined benefit plan can help meet an employer's funding obligations to the plan. However, such contributions may violate the prohibited transaction provisions of ERISA if not properly structured. Acting as an independent fiduciary, our team is often retained to determine if it is appropriate and in the plan's interest to accept contributions of employer stock. Among other things, we examine the proposed price, ancillary rights associated with the stock, restrictions on selling the stock, and the marketability of the stock.
Assuming a contribution is made, Evercore Trust may also accept responsibility for the ultimate management and disposition of the employer stock contributed to the plan. In disposing of employer stock we have utilized a wide range of selling alternatives, including secondary offerings, negotiated block sales, and sales under Rule 144. Since inception in 1987, our team has sold more than $25 billion of stock held by defined benefit plans.