For many years, we at the NCEO would hear stories about ESOPs that made us wince. People experienced problems, sometimes serious ones, that good and timely advice would have prevented. As these stories mounted, it seemed we could save people a lot of headaches if we could write about some of the common (and a few not-so-common) mistakes ESOP companies make and how to avoid them. Rather than just another long checklist, however, we have written this as a series of stories. The company name is usually disguised, but the scenarios and solutions are real. We engaged leading ESOP experts from all fields to help us with this task and added quite a few stories of our own. There is a good chance you will recognize your own company in at least a few of these dilemmas. If not, the book will give you greater confidence that you really aren't missing something. Either way, you'll sleep better at night. The third edition (2023) makes major changes, updating some of the entries, dropping others where the mistakes are fortunately now much less common, and adding many new entries. Some of the entries from earlier editions were written by individuals who have since retired. We have retained these if they did not need updating.