New 111th Congress: Uncertainty for ESOPs.
Prescription for Action—the Tried and True
The 111th Congress, First Session, of the United States of America, begins today, January 6th. [Despite common understanding, the word “congress” applies to both the Senate and House of Representatives, even though the public calls their Representative in the House a Congressman, Congresswoman, or even Congressperson, and their Senator, “Senator”.]
Under our Constitution, each Congress lasts two years, at which time all members of the House stand for election, and one third of the Senate does, as a Senate term is six years, and a House term is two years.
You might think all of this “procedural” talk wastes your time as an ESOP advocate, but just as in your company, if you do not understand the rules and policies you will make mistakes both for yourself, your colleagues, and your company.
For example, the pro-ESOP legislation introduced in the 110th Congress, which was 2007 and 2008, is no longer; it does not exist anymore. Thus, pro-ESOP advocates cannot ask their Representative or Senators to “support” S. 1322 by Senator Lincoln [D-AR], or H.Con. Res. 333 by Representative Hinchey [D-NY], or H.R. 6419 by Representative Rohrabacher [R-CA]. If these Representatives and Senator Lincoln introduce pro-ESOP legislation in 2009, their proposals will have new numbers.
For example, there are new members of the key tax committees of Congress, on both the Senate and House side, among both Democrats and Republicans.
Some ESOP advocates for the first time will have their Representative or Senator be a key decision maker on ESOP proposals, both pro and con, whereas some ESOP advocates who have diligently cultivated the pro-ESOP message with a member of Congress from their area will now not have a direct pipeline to a key member of the tax committees.
ESOP advocates who are “dyed in the wool” pro-Republican will be frustrated when your government relations agents in DC tell the truth that in today’s world, it will be the Democrats on the tax committees that make the final decisions, and Republican allies will only have “influence” if given the chance to express an opinion behind closed doors.
But even with the new Congress, new members, new challenges, some things will not change, including how to have the ESOP position “win.”
Never has the ESOP position, since the retirement of former ESOP godfather Senator Russell Long retired, been “won” in Washington, DC.
It will be won in the cities, and towns of America, only if ESOP companies, both leadership of the companies, and hopefully average pay employees, directly present the story of how the ESOP works positively in their communities in the cities and towns where they live—I mean directly to the member of Congress when he or she is home.
Never ever forget Senator Long’s words of wisdom - the most important thing to a member of Congress is being elected; and the second most important thing is being re-elected.
But this does not change either—members of Congress are people just like you. They do not respond favorably to someone who acts as if he or she is “entitled” to tell the member of Congress what “works” for them. Since the days of Plato, there has been an age old argument - does a representative in a Republic only vote the way the majority of people he or she represents wants, or does the representative have a higher duty to do what he or she sincerely believes is best after review of data and information that citizens do not have, or have no time to review. [Interestingly, there is a buzz among internet fans that in the 21st Century all citizens will have access to the same information as elected representatives, and therefore the relationship of representative to the represented will change. In this camp, having read the blogs, and the mean spirited and often crude remarks made by “educated” internet users, I hope not.]
So, ESOP advocates, if you can’t be civil around politicians, and respectful, leave the hands-on lobbying to others.
Finally, be armed with a plan. Have a specific request. Do not waste a member of Congress’s time, just like you do not want some salesperson to waste your time.
Advocacy and marketing 101 are the same. If you wonder how to lobby, just read the classic Dale Carnegie How to Win Friends and Influence People. Then learn what the pro ESOP agenda is, be it an offense for new and better ESOP laws, or the defense to stop bad ESOP proposals.
In this regard, keep an eye on The ESOP Association’s website for the advocacy kit, and breaking news.
Yes, today the 111th Congress begins; but never forget the more things change, the more they stay the same.
Comments
1. Steve Sheppard said...
A company's requirement in its relationship with and influence on Congress is no different than the company's charge year after year: you've got to go out and do it all again if you want to survive, and you'd better be getting better at it all the time, because your opponents are.... "The race is not always to the swift, but to those who keep on running."
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2. Corey Rosen said...
I'd add to Michael and Steve's comments that it is really important now to tell your stories to the local media. You'd probable be surprised at how easy it usually is to get a story on your company in the business section. Call; the business editor and "pitch" your story as an interesting example of how one company is weathering the recessions. Members of Congress (and their staffs) read the local press pretty avidly, and stories have a lot more weight than data, albeit it helps to back up your story with broader data on the success of ESPOs.
It's also a good time to apply for some of the major awards, such as Winning Workplace (wwww.winningworkplaces.org) and the 100 Best Companies lists for smaller companies (www.greatplacetowork.com). ESOPs tend to do very, very well in these competitions, and it is terrific publicity both for your company and for the idea.
1/7/2009