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 * BDO USA to Establish ESOP


TOGETHER WE THRIVE

Charting the course to our resilient future.


BDO USA STEWARDS TRANSFORMATIVE NEXT CHAPTER WITH ESOP

Purpose-driven strategy gives participating U.S. employees shared stake in
firm’s success.

CHICAGO, AUGUST 2023 − BDO USA, one of the nation’s leading accounting and
advisory firms, today announced its intention to establish an Employee Stock
Ownership Plan (ESOP), providing a broad base of our employees the benefit of
ownership and a new model for the firm’s continued investment, growth, and
long-term sustainability. When effective, BDO would be the first large public
accounting firm to implement an ESOP. With more than 10,000 participating
employees, BDO would be among the largest ESOPs in the country.

“An ESOP is the realization of our purpose of helping people thrive, every day.
It is a game-changer for our people, clients and communities, designed to
improve lives for generations to come,” said Wayne Berson, CEO of BDO USA. “Amid
the changing landscape of our profession, the ESOP unlocks the value of our firm
today and embodies our strategy to sustain a strong, caring and resilient
business for tomorrow. We are proud to establish this ESOP to invest in each
other so everyone who contributes to our success has the opportunity to benefit
from it.”

“Today’s talented professionals have many options in choosing where to start and
build their careers,” shared BDO USA Chief People Officer Cathy Moy. “BDO has
long been distinguished by a culture which puts people first with a commitment
to thriving together. The ESOP will be unique and innovative in our profession
and supports our goal to be an employer of choice.”

An ESOP is a qualified retirement plan established as a trust, where current and
future employees receive beneficial ownership in the company over time. Through
the allocation of company stock, participating BDO USA professionals will be
able to access a retirement plan that requires no out-of-pocket contribution,
helping them plan for their future financial well-being. 

“The ESOP also has material benefit to the firm,” notes Steve Ferrara, Chief
Operating Officer of BDO USA. “It allows for continued investment in quality, as
well as operations and growth strategies, while maintaining continuity in
leadership and commitment to a longstanding vision and purpose.”

Establishing BDO’s ESOP involved some of the leading ESOP advisors in the
country. Stout, a global investment bank and advisory firm, acted as exclusive
financial advisor and debt placement agent on the transaction. Global law firm,
McDermott Will & Emery provided legal counsel. In addition, BDO has engaged an
experienced, independent Trustee to represent the interests of ESOP
participants. The debt financing to support the transaction was arranged by
Apollo Capital Solutions and will be anchored by certain funds managed by
affiliates of Apollo (NYSE: APO). The ESOP and related transactions are expected
to become effective August 31, 2023. In conjunction with the effective date, BDO
USA’s fiscal year end will change to December 31. Terms of the transaction are
undisclosed. 

Media Contact: 
Silas Hill
Zeno Group
(919) 360-2623
silas.hill@zenogroup.com

By investing in the strength of our culture, the resilience of our business and
the future of our planet, we will continue to serve our clients to be able to
care for our people and help drive equity well into the future. 

Wayne Berson, CEO of BDO USA
The Leadership Files | Accounting Today
Read Full Article



ESOP FUNDAMENTALS

 * An ESOP is a qualified retirement plan that provides all participating
   employees with an ownership stake in a company.
 * In 1974, Congress created the legal framework to encourage ESOPs because its
   members believed ESOPs would create a broader distribution of wealth. 
 * Congress also expected ESOPs to improve company performance and to provide a
   way for owners of closely held companies to preserve their business legacy.

Learn More About ESOPs

Today’s talented professionals have many options in choosing where to start and
build their careers. BDO has long been distinguished by a culture which puts
people first with a commitment to thriving together. The ESOP is unique and
innovative in our profession and supports our goal to be an employer of choice.

Cathy Moy
Chief People Officer


BUILDING A NEW MODEL FOR OUR FIRM OF THE FUTURE.

The ESOP reflects the realization of our core purpose and commitment to helping
people thrive, every day. Benefits include: 

 * Bringing shared success to all participating employees 
 * Providing access to a retirement plan that requires no employee out-of-pocket
   contribution, helping our people plan for their future financial well-being
 * Helping to fuel continued investment in quality, as well as operations and
   growth strategies
 * Positively positioning us to recruit and retain talent 
 * Allowing us to preserve our 113-year-old history and culture 
 * Honoring our past and positioning us for the future



Read more about this transformational moment in BDO’s history


 * The Wall Street Journal 
   BDO to Establish Employee Stock Ownership Plan as Part of U.S. Restructuring
 * Bloomberg Tax
   BDO Launches Stock Plan Giving 10,000 Workers Part Ownership
 * Accounting Today
   BDO to create ESOP with $1.3B credit deal
 * Journal of Accountancy
   Large firm shakes up business model with employee stock ownership plan
 * CPA Practice Advisor
   BDO USA Calls Its New ESOP 'a Game-Changer' for the Profession




TOGETHER, WE THRIVE.

Everything we do is rooted in our core purpose to help people thrive every day.
It’s not only the right business thing to do; it’s the right human thing to do.
This starts by putting our people at the center of our work and extends to how
we treat and value our people, our clients and our communities. With a
dedication to quality and a purpose-driven culture, BDO offers a powerful choice
both for clients and those seeking rewarding professional careers.

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