Labels ESOPs as Bad Retirement Plans Administration’s Reaction Not Known   ESOP Community’s Plan? STAY ON COURSE!   While not unexpected, given that tax and ERISA experts continue to attack ESOPs — take note that the last three White House/Treasury set of recommendations since 2005 have all recommended eliminating ESOP tax benefits in order to lower the corporate tax rate — it is irritating that the policy of expanding employee ownership through the ESOP...

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Since the August 11, 2010, release of the data garnered by the survey of ESOP Association members that indicated that the average ESOP account balances of the respondents was nearly $200K, several experts in ERISA have pushed back with skeptical reactions based on earlier data collected by researchers. It is important to note that these account balance figures clearly are not representative of the entire ESOP universe, but are the responses of the ESOP companies that responded to this survey...

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• An increase in the average percentages of stock ownership the ESOP owns in their respective ESOP companies.
• Compounded growth in stock value as S-Corporation tax benefits are combined with a good economy since the early to mid-2000s.
• Levels of repurchase obligation which should not be ignored.
• Unique opportunities and challenges as the ESOP world and M&A world intersect.

What will YOU be doing?   Every October, for over 20 years, The ESOP Association and its members have been celebrating Employee Ownership Month (EOM). Each summer, the Press & Event Planning Kit, which highlights EOM activities of ESOP Association members, is shared with all corporate members to help in planning events. You can download a copy of the 2010 Press & Event Planning kit here.   Employee Ownership Month is a celebration of the incredible spirit of employee...

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We wanted to share the following press release which was sent out by The ESOP Association this morning regarding the results of the 2010 ESOP Company Survey.   For Immediate Release: August 11, 2010   For More Information: Amy Gwiazdowski, 202/293-2971, amy AT esopassociation.org   The ESOP Association and the Employee Ownership Foundation Release Results of the 2010 ESOP Company Survey   August 11, 2010 (Washington, DC) – The ESOP Association and the Employee...

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Yes, 401. It might sound as if we’re skipping a lesson, or lessons, but we’re not. Trust us. Lobbying 401 is all about the finesse, the soft touch, the thank you if you will.   As we all know, people liked to be thanked. When working with members of Congress, it’s an extremely important part of the work that we are all doing to increase knowledge about employee ownership. Although, sometimes it is more than just a small thank you note.   To...

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The Employee Ownership Foundation works to increase knowledge of employee ownership among thought leaders, academics, the media, and the general public. A more recent mandate of the Foundation has been funding academic fellowships for scholars researching broad-based employee ownership in America. The following is a quick rundown of fellowships awarded this year and administered by the Rutgers’s School of Management and Labor Relations (SMLR).   In April 2010, Rutgers SMLR...

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Congressman Dana Rohrabacher (R-CA-46) recently received a letter from the Joint Committee on Taxation estimating the revenue effect of H.R. 692 which he introduced on January 26, 2009. If it becomes law, H.R. 692 will amend the Internal Revenue Code of 1986 to exclude from gross income compensation received by employees consisting of qualified distributions of employer stock. The letter, which is very detailed, discusses several issues of the proposal which will provide special tax...

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S. 1612, the ESOP Promotion and Improvement Act of 2010, introduced August 6, 2009 by Senator Blanche. L. Lincoln (D-AR) has a new co-sponsor that we wanted to highlight – Senator Olympia J. Snowe (R-ME).   Senator Snowe serves as a senior member on the two Senate Committees with direct jurisdiction over the provisions of S. 1612: the Senate Committee on Finance, which is the Committee of original jurisdiction over all ESOP tax related causes, and as the Ranking Member of the Senate...

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H.R. 5207, the ESOP Promotion and Improvement Act of 2010, introduced May 5, 2010 by Congressman Charles W. Boustany, Jr. (R-LA-7) and Congressman Earl Pomeroy (D-ND-ATL) has added new co-sponsors.   Co-sponsors of H.R. 5207 as of July 27, 2010 are: Congressman Rodney Alexander (R-LA-5); Congressman Jim Gerlach (R-PA-6); Congressman Brett Guthrie (R-KY-2); Congressman Phil Hare (D-IL-17); Congressman Wally Herger (R-CA-2); Congressman Maurice Hinchey (D-NY-22); Congressman Tim Holden (D-PA-17);...

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The next time you find yourself on a plane, plug in to the in-flight radio system. Why? Well, you could find yourself listening to an interview with ESOP Association President, J. Michael Keeling. His interview, which focuses on ESOPs and employee ownership in America, can be heard on American Airlines throughout the month of July, on Delta Airlines in September and October, and on US Airways in September and October.   In addition to the in-flight radio program, a small...

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The Employee Ownership Foundation and the University of Pennsylvania’s Center for Organizational Dynamics, have partnered to offer CEOs/Presidents and/or the CEO/President designee, of ESOP companies a breakthrough Certificate Program - Leading in an Ownership Setting: The Program for CEOs.   This ESOP Leadership program is focused on enhancing each participant’s leadership effectiveness in his or her own company.   The program will provide CEOs with: • An understanding...

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In an effort to assist ESOP Association (TEA) members become better fiduciary liability insurance consumers, we have developed a checklist suggesting areas in the insurance policy that should be reviewed preferably prior to purchasing the policy. We suggest the checklist below should be reviewed prior to making any decision on purchasing the policy.   Is the ESOP covered in the policy definition of “Employee Benefit Plan” or “Retirement” Plan? Does it need...

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Steve Sheppard is a frequent speaker to employee-owned companies and the ESOP community at large on the financial and transformational potential of employee ownership.   In partnership with the Employee Ownership Foundation, Steve is scheduling speaking engagements with business leaders and opinion makers who are not aware of the transformational power of employee ownership through an ESOP for employees and companies sponsoring ESOPs.   Steve, former CEO of the employee-owned Foldcraft...

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This information was sent out to all ESOP Association members earlier today but we wanted to share it with readers on the blog as well.   Senators Bernard Sanders (I-VT), Patrick Leahy (D-VT), and Sherrod Brown (D-OH) have filed pro-employee amendments to H.R. 5297, the Small Business Lending Act.  One amendment would establish an initiative to promote employee ownership at the Department of Labor; the other amendment would establish a loan guarantee program at the Department...

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Dr. Richard B. Freeman, a preeminent researcher in the shared capitalism and employee ownership field, holds the Herbert Ascherman Chair in Economics at Harvard University, and is a research associate at the National Bureau of Economic Research, recently addressed The ESOP Association’s membership at the 2010 Annual Conference in May. A video of his presentation is now available on The ESOP Association’s website. A link to the video is located under News on the...

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The Employee Ownership Foundation is proud to announce the 2010 Edmunson Scholarship winners. The Charles E. Edmunson Scholarships Program is the oldest and most recognized of the Employee Ownership Foundation’s programs. Award scholarships are provided to winning ESOP companies to help defray the cost of sending non-management employee owners to ESOP Association programs and seminars focused on ownership education.    The 2010 scholarship winners are:   Kim...

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On April 14, 2010, the PA/DE Chapter of The ESOP Association hosted a meeting with representatives from the offices of Congressman Jim Gerlach (R-PA-6) and Congresswoman Allyson Y. Schwartz (D-PA-13). Roseline Marston, president of A.D. Marble & Co., Inc., located in Conshohocken, PA, hosted the meeting for the Chapter event.  From left to right: Jim Steiker, Chairman & CEO, SES Advisors, Inc., Philadelphia, PA; Alan Dorfman, CAS Specialist, A.D. Marble & Co., Inc., Conshohocken,...

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On June 16, 2010, Rutgers University’s School of Management and Labor Relations (SMLR) announced the recipients of the 2010-2011 Beyster Fellowships to support scholars in the field of employee ownership.   The annual fellowship program was established with a major gift from J. Robert Beyster and Mary Ann Beyster of La Jolla, Calif., with a grant from the Foundation for Enterprise Development in 2008. The fellowships honor Beyster’s many accomplishments in the area of employee...

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