Corey Rosen
A new bill in the North Carolina Senate would allow ESOP companies to qualify for state contracting preferences based on ownership by historically disadvantaged groups. Currently, ESOP-owned companies do not qualify for any contracting preferences in federal or state programs aimed at historically disadvantaged groups because the legal owner of the ESOP is a trust, not a qualifying individual or individuals.
Corey Rosen
Governor Jared Polis of Colorado has signed HB24-1157, a bill that provides statutory authority for the Colorado Employee Ownership Office, which Governor Polis created in 2020 through an executive order. The office provides technical assistance, coordinates with other agencies, and conducts outreach. The bill would make the office permanent and expand prior tax credits for the costs of converting to or expanding an employee ownership plan. The law provides a refundable tax credit for up to $50,000 of the costs of setting up an employee ownership plan, defined as an ESOP, employee ownership trust, worker cooperative, or equity grants or rights given directly to at least 20% of a company’s workforce where those workers hold 20% or more of the company’s fully diluted securities. Conversions to other qualified forms of employee ownership now also qualify for a credit of up to 50% of the costs, up to a maximum credit of $25,000. The law also provides a tax credit of 50% of the costs, up to a maximum credit of $25,000, for a qualified employee-owned business expanding its employee ownership stake by at least 20%.
NCEO
The next Is an ESOP Right for You? seminar is coming soon to Nashville, TN on July 29-30. This two-day event is designed for companies considering a transition to employee ownership. Over the course of two days, attendees will have the opportunity to meet with existing ESOP companies, expert service providers and staff from the NCEO and Employee Ownership Expansion Network (EOX) to learn more about employee ownership as a whole, the mechanics of setting up an ESOP including, feasibility, transaction structure, tax implications and more, as well as explore alternatives to an ESOP. The meeting will consist of both interactive roundtable discussions as well as presenter led content, with plenty of opportunities for Q&A.
Loren Rodgers
On April 30, 2024, Assistant Secretary of Labor Lisa M. Gomez spoke at the NCEO’s annual conference in Tampa, Florida. Assistant Secretary Gomez leads the Employee Benefits Security Administration (EBSA). As the head of EBSA, she is at the center of some of the most important decisions affecting ESOPs and employee ownership.
Corey Rosen
In the last three months, four lawsuits have been filed against ESOP companies for imprudently investing their cash assets in low-yield investments. These are the first lawsuits ever filed on this topic. The suits are at ESOP companies Aluminum Precision Products, Pride Mobility Products Corp., Aerotech Inc., and Wilson Electric Services Corp. and all were filed by the same law firm, Engstrom Lee.
Corey Rosen
Updated November 6, 2025
Liza Shifrin
At the 2024 NCEO Annual Conference earlier this month, one of the questions I heard most often from attendees was "where can I find state-specific ESOP information?" Whether you’re a current ESOP and looking to connect with other employee-owned companies in your state, or you’re ESOP-curious and searching for statistics on your state’s ESOP breakdown, the NCEO is here to help.
Loren Rodgers
On May 21, the Wall Street Journal reported that the alternative asset manager Blackstone would grant equity to the 18,000 employees at its portfolio company Copeland (alternative non-paywalled version at MSN). The Journal article states that under a new initiative Blackstone plans to announce this week, the practice of broad-based ownership interests for employees will apply “to all new deals going forward in which its private-equity business buys control of a company.”
Timothy Garbinsky
Following hot on the heels of the 60 Minutes episode this past weekend, employee ownership was the focal point of a recent episode of the popular podcast Freakonomics. Titled "Should Companies Be Owned By Their Workers?," the episode puts host Stephen J. Dubner in conversation with NCEO founder Corey Rosen as well as KKR's Pete Stavros and the Democracy Collaborative's Marjorie Kelly.
