On February 13, 2013, Senator Kelly Ayotte (R-NH) introduced S. 273, a bill to modify the definition of fiduciary under the Employee Retirement Income Security Act of 1974 to exclude appraisers of employee stock ownership plans (ESOPs). The bill is co-sponsored by Senators Roy Blunt (R-MO), Mary L. Landrieu (D-LA), and Mitch McConnell (R-KY). This bill is a response to the Department of Labor's (DOL) proposed anti-ESOP regulation mandating all private ESOP company appraisers be ERISA fiduciaries.
Read the full press ...
On January 8, 2013, NJ Assemblyman and Deputy Speaker of the New Jersey State Legislature, Upendra Chivukula, introduced a bill to encourage small businesses to establish ESOPs in the state.
The bill provides a gross income tax exclusion for certain capital gains from the sale of employer securities of a non-publically traded business to an employee stock ownership plan, a New Jersey S corporation owned by an employee stock ownership plan, or an eligible worker-owned cooperative, benefiting employees of the business ...
Chuck Pennoni, Chairman of Pennoni Associates, and Cecil Ursprung, retired CEO of Reflexite and current SES board member, discuss why an ESOP was the right business succession planning tool and employee benefit for their companies.
ESOPs operate successfully in a broad range of companies—large and small, public and private. The ideal private company candidate will meet most of the following criteria:
The company has strong, stable cash flow and a history of increasing sales and profits.
The ownership group is interested in remaining involved/participating in the business.
The owner(s) can be patient — they are not seeking immediate cash payment in full.
The ownership group is concerned about employees and/or the long term future of company. They are motivated by "legacy" ...
Business owners who haven't yet established an ESOP often wonder if doing so will cause them to lose control of their company. This is one of the 8 most common ESOP myths we hear when speaking with organizations about exploring and establishing Employee Stock Ownership Plans (ESOPs).
Remember that ownership does not equal control. While in non-public ESOP companies voting rights on shares allocated to ESOP accounts must be “passed through” to ESOP participants for votes on major corporate matters, other decisions ...
Believe it or not, ESOP companies create jobs more quickly than non-ESOP companies. Why? When employees realize that their performance on the job matters because they have a stake in the company, they're more motivated. The company prospers and as a result, more jobs are created and/or maintained.
In this NBC10 Philadelphia news report, Ken Baker, CEO of New Age Industries, talks about his belief that ESOPs create "shared capitalism." "Shared capitalism is when you have the company management and workers all ...
August 15, 2012 - Of the more than 12 million privately owned businesses in the U.S., 70% will be changing hands in the next 10-15 years. Most of the owners of these companies will not have spent time planning for their retirements, much less having planned for how they will sell or transfer ownership of their company. And remember
November 12, 2013 - Whether your ESOP plan year-end corresponds to the calendar year or not, you should always have a checklist at the ready! Mychelle and Kelly, two of our Senior ESOP Administrators with more than two decades of plan administration experience between them, will give you some best practices and cover a range of topics, including: • Form 1099R tips and explanations • Form 945 tips & explanations • Required Minimum Distributions • Form 8955-SSA • Partial Plan Terminations ...
Date: June 6, 2012Location: Grand Central Oyster Bar, Grand Central Terminal Lower Level, New York, NY 10017
Steve Greenapple, shareholder of SES and of our sister law firm of Steiker, Greenapple, & Fusco, P.C., and Vice President of The ESOP Association's NJ/NY chapter, will present A Review of the Current Merger & Acquisition Environment and Its Implications for ESOP Companies at 9:05 a.m. Following the morning presentation, CEOs and CFOs in attendance will meet in separate roundtables to discuss issues of concern in an open-forum format, with ESOP experts ...