ESOP repurchase liability is the obligation of an employee stock ownership plan sponsor to buy back shares from departing participants at fair value. The liability grows with workforce demographics and company valuation. Companies plan for it using sinking funds, internal loans, or life insurance on key individuals. Accurate forecasting is critical to protect cash flow and sustain the ESOP.

CFOs project ESOP repurchase liability and set aside funds or credit to meet future buybacks. Advisors may layer key-person insurance to buffer cash needs after executive deaths. Accurate forecasting protects payroll, borrowing capacity, and employee confidence in the plan's sustainability.