Loren Rodgers
The IRS issued a news release on August 9 stating that as part of “an expanded focus on ensuring high-income taxpayers pay what they owe,” it was warning “businesses and tax professionals to be alert to a range of compliance issues that can be associated with Employee Stock Ownership Plans (ESOPs).”
Nancy Wiefek
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The 2023 compensation survey is now open.
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.
