The now famous Texas Congressman Ron Paul [R-TX] has consistently put his name on the line for employee stock ownership since he came to Congress in 1989. Most recently, he signed on to H.R. 6419 by Congressman Dana Rohrabacher [R-CA] that essentially would make broad based stock compensation plans tax free. Among insiders who keep track of those that support ESOPs and employee stock ownership, there is no doubt where Congressman Paul stands.

 

But there is a great deal of confusion about who in Congress really supports more employee stock ownership. Experience teaches that many ESOP advocates assume that her or his Congressperson, or Senator, is a friend of employee stock ownership because she or he was nice when they visited their office in DC, or when they visited at a civic club or town hall meeting.

 

A nice remark about employee stock ownership, however, is not good enough, as what employee ownership advocates need to protect stock programs such as ESOPs is more than nice words, and a pat on the back. A member of Congress needs to stand up for employee stock ownership, just as Congressman Paul, and Congressman Rohrabacher have done year after year by signing on to pro-ESOP, or pro-employee stock ownership proposals. And on the key committees, a vote for the pro-ESOP position, or a speech in public, before the press and colleagues, also qualifies as a true pro-employee stock ownership position.

 

Men and women elected to Congress, as a rule, are great “people” people; they are charming, gregarious, and know how to make other human beings feel good. But the key to judge by is, “Are they intense for employee stock ownership? Is employee stock ownership a priority?” If not, ESOP advocates should appreciate someone being nice when they visit, but nice does not deliver the goods.

 

Frankly, from 1980 through 1986, support for ESOPs and employee stock ownership in Washington was limited, but very, very deep, as it consisted mainly of the Chair of the Senate Finance Committee, Senator Russell B. Long, and the President of the United States, Ronald Reagan.

 

From 1986 through 1989, ESOPs had to rely on a handful of members to save ESOPs, such as Congressman Beryl Anthony [D-AR], Senator Max Baucus [D-MT], the aforementioned Congressman Rohrabacher, and Congressman Cass Ballenger [R-NC].

 

From 1989 through 2000, support for ESOPs was very wide, but shallow, as at one time over 100 members of Congress in the early 90s co-sponsored pro-ESOP legislation.

 

In recent years, we are unsure who among the majority party in Congress will really stand up with intensity and push to promote employee stock ownership. We are making progress, but there is not a comfort level that any Democrat in Congress would fight for employee stock ownership.

 

In other words, are they like Congressman Ron Paul who will openly take a public stand for employee stock ownership? Or are they just being nice to you?