A report from the University of Southern California shows that only 10% of the Fortune 1000 companies are engaged in sophisticated approaches to participative management. The study was commissioned by the Association for Quality and Participation.
A new report by John Zogby Strategies conducted for the Employee-Owned S Corporations of America (ESCA) provides evidence of the positive impact of ESOPs on younger workers (ages 22 to 40).
A new study by Credit Suisse First Boston of the impact of stock options on profitability in banks shows that not showing the cost of options on income statements in 47 banks resulted in earnings being 4% higher than would have been the case if the present value of the options were accounted for
The "Back to Small Business Job Protection Act" (the small business tax incentives feature of the Minimum Wage Bill) contains a number of provisions important to employee ownership. The bill has now been passed by the Congress and should be signed in the next few weeks by the President.
The American Taxpayer Relief Act (ATRA) made changes in the recognition period for built-in gains taxes for C corporations converting to S status. In the past, the law provided that such companies must pay tax on the sale of appreciated assets for 10 years after conversion.
The tax law passed by Congress would make a variety of changes in the rules for defined contribution plans, particularly with respect to limitations on contributions to 401(k) plans.
Starting in 2013, business owners selling their companies will face significantly higher taxes on the sale proceeds. Appropriately structured sales to ESOPs allow sellers to defer capital gains taxes, and higher rates will make that deferral more valuable.
In a new study, Towers Perrin analysts Michael Grund and Richard Ericson looked at 335 companies that voluntarily chose to expense options between April 2, 2001, and August 14, 2003 ( "Options Expensing Announcement Has No Impact on Share Prices," March 31, 2004).
The NCEO now offers a customized live PowerPoint-based fiduciary training program. The 90-minute session is designed to help inside fiduciaries understand their roles and responsibilities as fiduciaries.
The Labour Government in the United Kingdom has proposed new legislation to encourage employee ownership. It would replace the existing "Save as You Earn" plan, a highly tax-advantaged savings/stock purchase plan. The new plan would be based on a trust similar to a U.S. 401(k) plan.
