The District of Columbia, Louisiana, Michigan, New Hampshire, New Jersey, New York (and New York City), and Tennessee do not provide the same exemption from income tax for S corporation earnings attributable to an ESOP as does federal tax law.
In White v. Marshall & Ilsley Corp., No. 11-2660 (7th Cir. Apr. 19, 2013), the Eleventh Circuit upheld the Moench presumption of prudence for investments in employer stock for Marshall & Ilsley's 401(k) plan.
In its LaRue decision (LaRue v. DeWolf, Boberg & Associates, 128 S. Ct. 1020, 42 EBC 2857 [2008]), the Supreme Court allowed individuals to sue ERISA plan fiduciaries to recover their personal losses from the plan.
How many ESOPs cost more than $200,000 to establish? How many transactions involve seller financing and warrants? How many professionals and what types do companies typically engage?
Three researchers used an exceptional dataset to examine the impact of employee ownership and other group incentives on company practices and performance.
Shareholder proposals to link options to performance and to require companies to expense them continue to gain momentum. The Investor Responsibility Research Center recently reported that 319 shareholder proposals have been filed on executive pay this year, up from 106 last year.
SharesPost, one of a number of new companies that provide a way for buyers to purchase stock or options from employees of closely held companies, has announced that it will now be working with registered brokers to help facilitate the transactions.
