Jaymie Oviedo
We are excited to present our highly anticipated 1.5-day seminar Is an ESOP Right for You? in New Orleans from October 24–25, 2023. As the ESOP landscape grows, this event aims to equip entrepreneurs, business owners, and HR professionals with in-depth knowledge on ESOP transaction structures, plan design, financing, and more.
Corey Rosen
The WORK Act seemed to be a major win for employee ownership advocates. The law directed the Department of Labor (DOL) to create an Employee Ownership Initiative office to provide education on employee ownership (which it has now done) and authorized $50 million in funding over five years, starting in fiscal year (FY) 2025, for state employee ownership outreach and education programs. Although the WORK Act authorized the expenditures for the state programs, funding comes through a separate appropriation process. On July 27, the Senate Appropriations Committee passed a $13.5 billion FY 2024 DOL appropriation bill that says nothing about employee ownership in the bill itself, although the accompanying report directs the DOL to create the Employee Ownership Initiative and to issue guidelines on ESOP valuation (something the DOL has also already committed to do). The $9.8 billion House FY 2024 DOL appropriation bill also has no provisions on employee ownership; unlike the Senate report, the House committee's bill summary does not mention employee ownership. Because the DOL has already committed to the programs described in the Senate bill, it is unclear whether what the House did matters.
Corey Rosen
The Promotion and Expansion of Private Employee Ownership Act (PDF) has been introduced in the House and the Senate. The bill is a revision of a proposal submitted in each chamber to encourage the growth of S corporation ESOPs. Both bills have bipartisan support. The Senate bill’s lead sponsors are Ben Cardin (D-MD) and Steve Daines (R-MT); in the House, the lead sponsors are Mike Kelly (R-PA) and Earl Blumenauer (D-OR). There are 20 Senate cosponsors and 6 House cosponsors so far, including some of the most liberal and conservative members.
Timothy Garbinsky
A new NCEO study commissioned by the Employee-Owned S Corporations of America (ESCA) found that workers who own their companies via an ESOP have far greater retirement security than the majority of the American workforce. The recent survey also shows that, even at a time of great upheaval and uncertainty in the labor market, when many companies are contracting and struggling to find and retain workers, employee-owned S corporations also report better employee retention through a corporate culture that fosters worker satisfaction.
Chris Cooper
“Tell me, and I forget; teach me, and I may remember; involve me, and I learn.”
Corey Rosen
Mandate for Leadership: The Conservative Promise, a project of the 2025 Presidential Transition Project, has strongly endorsed regulatory changes to make it easier to set up ESOPs. The project, led by the Heritage Foundation, invited over 400 conservative scholars and thinkers to set out detailed policy recommendations for all aspects of the federal government, resulting in an 883-page document.
Nancy Wiefek
The 2023 Repurchase Obligation Survey Report is now available. Our sincere gratitude goes to our survey respondents, who make these surveys possible.
Megan Bonwell
The NCEO always seeks new ways to support and connect the employee ownership community. That's why, starting July 27, we will offer monthly NCEO Office Hours! Each month, two NCEO staff members will be available to answer your questions, provide insights, or give you a glimpse behind the curtain.
Corey Rosen
On July 10, the Department of Labor (DOL) announced it is creating the Employee Ownership Initiative within its Employee Benefits Security Administration (EBSA). The initiative results from the 2022 Worker Ownership, Readiness, and Knowledge Act (WORK Act), which was enacted as part of the SECURE 2.0 Act in the 2023 Consolidated Appropriations Act. The WORK Act requires the DOL to set up a grant program for state employee ownership centers. Funding for that provision will need an appropriation in the 2023 budget. The DOL’s Employment and Training Division will administer the grant program. The WORK Act also requires the DOL to set up an office to provide information to states and other interested parties about employee ownership. That will be under EBSA.
