The proposed buyout of the Tribune Company by an ESOP and Sam Zell could possibly be derailed if certain credit covenants are not met. A stipulation in the credit agreement requires that the ratio of indebtedness to the trailing four quarters of EBITDA cannot exceed 9 to 1.
According to Hubert Alleyne of the International Communications Network, Trinidad is now considering legislation to encourage employee ownership. Alleyne previously worked for the Royal Bank of Trinidad and Tobago, a pioneer in employee ownership in Trinidad.
A new NCEO analysis of ESOP litigation in closely held companies over the last 10 years shows that of 74 lawsuits involving trustees, 54 were for issues dealing with a transaction. The data suggest that the risks of being a trustee in an ESOP with a high-quality team of advisors and a good third-party administrator are extremely low.
In Benefits Committee of Saint-Goban Corp. et. al vs. Key Trust Company of Ohio, N.A. (U.S. District Court, Northern District of Ohio, Eastern Div., No.
TWA, which continues to advertise itself as "employee owned," has received approval for a Chapter 11 bankruptcy reorganization that it and its unions believe will lead to a recovery. As part of the agreement, however, employee ownership will drop from 45% to 30%.
According to a new study by Eric Lie and Randall Heron, 29.2% of companies issuing options to executives and/or directors between 1996 and 2002 have grant date patterns that suggest backdating or other manipulative practices (such as "spring-loading," the announcement of a grant before good news
NCEO research for Innovest and the Herron Foundation has found that at least 29% of S&P 500 companies have some kind of broad-based employee ownership plan.
