Defined Benefit Plans
Company stock contributions to a defined benefit plan can help meet an employer's funding obligations to the plan. If not properly structured, however, such contributions may result in a violation of ERISA. As an independent fiduciary, the SFS team has often been 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 accepts 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, the SFS team has sold more than $20 billion of stock held by defined benefit plans.