History of ESOPs in S Corporations Daniel M. Zugell, CLU, ChFC, LUTCF Pete Shuler Fred H. Thomas History of ESOPs in S Corporations In 1996, Congress passed the Small Business Job Protection Act,[1] which allowed a trust associated with an employee benefit plan...
Every year, the National Center for Employee Ownership (NCEO) publishes a list of the nation’s 100 largest employee-owned companies. In 2020, architecture and engineering (A&E) firms accounted for 17 of these companies making the industry one of the most...
Two bills have been recently introduced in the United States Congress to promote employee ownership to perpetuate American businesses and provide retirement security to the American workforce. Both H.R. 2096 and S. 1212 bills are titled “Promotion and Expansion...
By Alan Kandel & Marshall Custer Employee Stock Ownership Plans (ESOPs) are gaining renewed attention in the cannabis industry as a promising tool for business succession, liquidity, and tax efficiency—particularly in light of the heavy burden imposed by...
The unique ownership structure of a company owned by an employee stock ownership plan and trust (ESOP) expands the fiduciary duties of the board of directors of the ESOP company. Since the trustee of the ESOP acts on behalf of the ESOP (which is a shareholder) and the...
Over the next 10 years, over 50% of the privately held, family owned or ESOP businesses will be changing ownership. Are you one of them? What is your Plan? If you have the financial picture figured out, what about the organizational and management plan? ...
As the country focuses its attention on COVID-19, and with most of the nation under strict “stay-at-home” orders allowing only essential businesses to operate, many private companies in a variety of industries are suffering the economic impact of the...
KSM’s Mark Flinchum and Andy Manchir with the firm’s ESOP Services Group joined the National Center for Employee Ownership (NCEO) for a webinar presentation on unique alternatives to a traditional ESOP structure. This webinar discussion covered...
What will happen to the trucking company that you’ve spent a lifetime building when you retire? Can selling to an ESOP make the transition of your company and the start of your retirement any easier? The use of employee stock ownership plans (ESOPs) as a...
You may be fortunate to be employed at one of the 6,500 companies in the U.S. that sponsor an employee stock ownership plan (ESOP). If not, perhaps you will be in the future, since ESOPs are increasingly attractive retirement plans that exhibit bipartisan support....