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Panel Proposals

Repurchase Obligation and Sustainability

Demystifying ESOP Segregation: Best Practices for Plan Sponsors

Wednesday, April 8, 2026
9:15 AM - 10:15 AM CDT
Location: 106
CE: 1
CE Type: CPE, SHRM
Education Level: Novice
As ESOP companies mature, the issue of segregating participant accounts becomes increasingly complex and consequential. This session will unpack the legal, financial, and administrative dimensions of ESOP segregation. The session will help attendees understand when and how segregation should occur, its impact on repurchase obligations and company cash flow, and the potential pitfalls of mismanagement. Whether you're a plan sponsor, trustee, or advisor, this session will equip you with actionable insights to navigate segregation decisions with confidence and compliance.

Through real-world case studies, interactive breakouts, and scenario-based discussion, participants will engage directly with the nuances of segregation strategy. Attendees will leave with a clear understanding of how segregation affects ESOP sustainability and company cash flow—and how to align their approach with best practices.

NCEO Publication: The ESOP Repurchase Obligation Handbook
NCEO Publication: Sustainable ESOPs

Learning Objectives:

  1. Upon completion, participants will be able to analyze the legal and fiduciary considerations surrounding ESOP account segregation, so that participants can evaluate if and when to segregate participants in their ESOP.
  2. Upon completion, participants will be able to compare different approaches to ESOP segregation, so that participants can identify which strategy best aligns with their company's size, maturity, and goals.
  3. Upon completion, participants will be able to evaluate real-world case studies to recognize common challenges and solutions in implementing segregation policies, which will enable attendees to formulate a preliminary segregation plan for their ESOP.