Corey Rosen
Lessons in Reinvention at the Fall Forum
Want to see reinvention at work? Watch this video from the Motz Corporation (parent company of two external brands: The Motz Group and USGreentech):
Employee Ownership Blog
Corey Rosen
Corey Rosen
Companies with ESPPs Outperform Those Without Them
A new study by Carver Edison shows that over the last five years, public companies with employee stock purchase plans (ESPPs) had a return on equity of nearly 12% per year, compared to 7% in companies without these plans. They had operating margins of 9.5%, compared to 8.2% for non-ESPP companies, and they had four times the annual sales growth (4% to 1%). Almost half the S&P 500 and 40% of the Russell 3000 offer these plans. The study was based on market-weighted indices of ESPP and non-ESPP companies. It is not possible to tell whether companies that offer these plans tend to be better performers to begin with or whether there is a causal relationship with ESPPs.
Corey Rosen
Two Federal Proposals Would Promote Employee Ownership
A new bill introduced by Rep. Ocasio-Cortez and an amendment to the Defense Authoriziation Act would both encourage employee ownership. The two proposals come shortly after Sen. Ron Johnson (R-WI) advocated linking business support during the COVID crisis to employee ownership.
Corey Rosen
U.S. Senator Says Link Employee Ownership to Government Aid
Only a handful of people in Congress have actually worked for an ESOP company, but Sen. Ron Johnson (R-WI) is one of them. In an interview with Urban Milwaukee on July 3, Johnson suggested linking government assistance to employee ownership. “PPP on average probably provided a grant of around $11,000 per employee. So if we’re going to provide these grants, you know, restore capital, what I will say in exchange for the grant, a business that wants to reopen would then establish a new ownership structure, something like an employee stock ownership plan. I actually worked at one … and it’s a great form of ownership. Every employee participates. They participate in the earnings of the company, generally set up as a retirement type of plan. It’s a really good ownership structure for a capitalist society. I think it would also help alleviate the inequality gap as well.”
Corey Rosen
NCEO and ASA File Amicus Briefs in Choate ESOP Case
Update on July 16, 2020: Pursuant to a motion by the plaintiff-appellant, the Fourth Circuit has today dismissed the plaintiff's appeal of the district court's judgment.
Corey Rosen
SBA Updates Guidance on Payroll Protection Program Compliance
On May 13, 2020, the SBA, in consultation with the Department of the Treasury, updated its Frequently Asked Questions to include a new Question 46 that provides additional guidance about the certification needed to prove that the funds were necessary in order to maintain payroll and thus eligible for forgiveness.
Corey Rosen
SBA Issues PPP Enforcement Guidance
The Paycheck Protection Program (PPP) has generated considerable controversy concerning its implementation, fairness, and rules. The Small Business Administration (SBA) is maintaining a FAQ document on the PPP program (PDF) that will be regularly updated. The SBA states, "Borrowers and lenders may rely on the guidance provided in this document as SBA’s interpretation of the CARES Act and of the . . . PPP Interim Final Rules . . . The U.S. government will not challenge lender PPP actions that conform to this guidance, and to the PPP Interim Final Rules and any subsequent rulemaking in effect at the time."
Corey Rosen
Payroll Protection Program Funding Extended
Congress voted to add $310 billion in funding to the Payroll Protection Program (PPP). Banks have said the funds are likely to run out quickly. The bill adds one important change to the bill by adding a set aside for “(I) insured depository institutions with consolidated assets of not less than $10,000,000,000 and less than $50,000,000,000;” and “(II) credit unions with consolidated assets of not less than $10,000,000,000 and less than $50,000,000,000.” The bill provides that not less than $30 billion in loans will be made by these community financial institutions. The Senate passed the bill on April 21, and the House on April 23. It now goes to President Trump, who is expected to sign it.
Corey Rosen
Join Jack Stack of ESOP-Owned SRC Holdings for Answers About Responding to the Coronavirus
Jack Stack, the CEO of SRC Holdings, a 100% ESOP-owned company and creator of the Great Game of Business, is holding a free Q&A on responding to the coronavirus. It will be held Friday, March 20, at 11:00 CT. Stack will be looking at issues such as: