Background One of the concerns that arises in the case of a company that is 100% owned by its ESOP (or where an ESOP owns less than 100% of the outstanding stock, all of the stock held by the ESOP is allocated, and the ESOP will not be acquiring any additional stock) is that once all of the outstanding shares have been allocated to the participants, there will be no stock left to allocate to new participants, except for (a) small amounts of annual forfeitures from former participants who were not fully vested and (b) vested shares that are repurchased from former participants and reallocated to current participants. Assuming that the company continues to make cash contributions to the plan after all shares of company stock have been allocated, new hires will receive pro rata allocations of cash contributions, but will not receive any allocations of company stock. Possible Solutions ... Read More..