Corey Rosen
The 2018 Main Street Employee Ownership Act made it much more practical for the SBA to guarantee bank loans under its 7(a) program for companies seeking to borrow money to buy out owners through an ESOP. After the law was passed, the SBA issued standard operating procedures that directly contradicted the law; however, by 2022 these issues were largely resolved, and banks started making loans under the 7(a) program.
Corey Rosen
Representatives Ryan Mackenzie (R-PA) and Tim Walberg (R-MI) have introduced the Valuing Employee Stock Today Act, H.R. 8660. The law would amend the Fair Labor Standards Act of 1938 (29 U.S.C. 207(e)) by adding restricted stock units to an existing exemption for “any value or income derived from employer-provided grants or rights provided pursuant to a stock option, stock appreciation right, or bona fide employee stock purchase program from the determination of an employee’s regular rate for purposes of calculating such employee’s overtime compensation.” The purpose of the exemption is to ensure that restricted stock units (RSUs) are not subject to overtime pay calculations.
Scott Rodrick
California Governor Gavin Newsom, who stated on May 19 that "You cannot save democracy unless we democratize the economy," issued an executive order on AI on May 21 that in part directs the state government to review opportunities to expand employee ownership and review policies to provide displaced workers with a safety net that could include stock and other forms of equity.
Corey Rosen
In language in the committee report on the fiscal year 2027 appropriations bill, the House Committee on Appropriations urged the Department of Commerce to take steps to promote employee ownership, writing:
Nancy Wiefek
A new research paper, Employee Share Ownership, Management Practices, and Labor Productivity: An Analysis Using Establishment Level Micro-Data from the U.S. Census, addresses long-standing questions about ESOPs and productivity. The research team, led by Fidan Ana Kurtulus at the University of Massachusetts Amherst, compiled the largest and most comprehensive data to date on broad-based employee ownership at both privately held and publicly traded US manufacturing companies. Specifically, they combined three restricted US Census micro-databases—the 2010 and 2015 Census Management and Organizational Practices Survey (MOPS), the American Survey of Manufacturers (ASM), and the US Longitudinal Business Database (LBD)—with the US Department of Labor’s Form 5500 Private Pension Plan (PPP) database.
Corey Rosen
In Beyond Your Ownership: How Employee Ownership Can Align Your Purpose, People, and Profit, Bob Whalen, the CEO of ESOP-owned HB Global, and Jamie Dykstra, who helped write the book, draw on the company's remarkable history since becoming ESOP-owned to demonstrate the power of employee ownership. Whalen bought the commercial and residential contractor in 2008 when it had 133 employees. He sold it to an ESOP in 2010 but remains the CEO. The company has grown to 1,700 employees, partly through organic growth, but significantly through an active acquisition program. HB Global has done over 30 acquisitions, a few of which have been funded by its separate business unit, HB Capital, which acts as its own special-purpose private equity firm that buys target firms and ultimately sells them to an independent ESOP or HB Global.
Corey Rosen
In 2024, Canada enacted legislation that exempts the first $10 million (Canadian) in gains from the sale of a business to a qualifying employee ownership trust (EOT). The exemption was set to be available only until the end of 2026. The government’s proposed 2026 budget would have eliminated the incentive, but after a campaign by supporters of the new law, the spring 2026 government budget update will make it permanent.
NCEO Events & Webinars
Most leaders of employee-owned companies spend considerable time managing financial, operational, and compliance risks. Digital assets, however, rarely receive the same level of structured oversight. In a recent NCEO webinar, Digital Asset Risk Management: Protecting Employee-Owned Companies, John Weller at SteadyRain made the case that this gap represents a meaningful and often underappreciated threat to long-term ownership value.
Corey Rosen
Norway's main sovereign wealth fund is the Government Pension Fund Global. The fund is managed by Norges Bank Investment Management, whose CEO Nicolai Tangen recently wrote on LinkedIn that “As evidence for employee share ownership continues to grow, companies face a choice. They can concentrate ownership narrowly, or they can use employee ownership as a strategic tool to improve returns and build more resilient companies. The financial case for the latter is compelling. This should be on every board’s agenda.” Tangen states that the fund has consistently voted its shares in favor of proposals for employee ownership plans.
