Many businesses are turning towards employee ownership models for the unique benefits offered, including higher worker retention rates or, as recently noted more frequently, as a succession planning option. Business owners who are beginning to explore options for employee ownership may have q...
While 401(k)s are one of the most common retirement savings plans, there are still a lot of American workers who do not have access to a 401(k) or do not have any significant retirement savings. A new bill has passed the House that intends to increase access to retirement savings and accommod...
A congressional bill introduced in the House of Representatives proposes tax incentives for Employee Stock Ownership Plans (ESOPs). The bill is supported by the ESOP Association as legislative support to encourage more businesses to provide a way for employees to share in and help grow the co...
Employers are getting more creative in structuring benefit packages to recruit new employees and retain top workers in an increasingly competitive environment. While salary is a primary consideration, many prospective employees understand the long-term value in benefit packages, especially re...
Many businesses fail to consider the benefits of an Employee Stock Ownership Plan (ESOP) until plans for a traditional sale fall through. After transitioning to an ESOP, business owners, shareholders, and employees may wonder why they never considered employee-ownership earlier. Even the ever...
Federal legislation and lawmakers at the state level are pushing forward legislation to foster the development of more Employee Stock Ownership Plans (ESOPs) and make it simpler for companies to transition to ESOP ownership. California lawmakers should support legislation in support of ESOPs to b...
Companies looking to innovate may invest in research and development or hire outside consultants for ideas. However, one source of innovation may come from a resource the business already has. Employees and workers may understand the industry as well as the strengths and weaknesses of the bus...
In April, Colorado's governor Jared Polis signed an executive order to focus on expanding employee ownership in Colorado businesses. With more legislative activity to provide incentives and support for employee-ownership, including Employee Stock Ownership Plans (ESOPs), California's politicians ...
When business owners are eyeing retirement, they may be ignoring a ready buyer for their business standing right in front of them. After years of building the company, the founder's hope that the younger generation will take over may never materialize, leaving the owner without an exit strate...
Employee ownership is an increasingly popular way for baby-boomer business owners to pass on their company to the next generation. There are a number of financial benefits to owners selling their company to an employee stock ownership plan (ESOP). However, many business owners still focus on ...
The benefits of employee ownership can extend beyond the financial advantages for owners and workers. The focus of ESOPs for business owners is often limited to the financial value, namely providing a ready buyer for the company at fair market value and the tax benefits of selling to an ESOP....
In a recent Fourth Circuit case, an ESOP trustee was found to have caused the trust to overpay for corporate stock by almost $30 million. The court found that the trustee failed to comply with their fiduciary duty to act in the best interests of the ESOP participants. This case can be used as a...
Employee-ownership and benefit corporations are becoming increasingly popular corporate structures that offer unique benefits to multiple stakeholders. In contrast to a standard corporation that primarily benefits shareholders, a benefit corporation balances profit and social purpose. Combining...
A new study from the Rutgers Institute for the Study of Employee Ownership and Profit Sharing has found that Employee Stock Ownership Plans (ESOPs) can reduce wealth inequality for low and moderate income families. The study found that employees, through education and investment, can increase...
Brewery culture seems made for Employee Stock Ownership Plans (ESOPs). Breweries seek collaborators and innovators, and typically people want to work there long term and be part of the creation team for new brews. Without an ESOP, retirement can be difficult for workers, and could even close the brewery or change its structure altogether, depending on how the owners plan to retire. As many craft breweries are in the stages of their youth, their owners and founders may not yet have thought of a succession plan for their business, or developed contingencies to be employed in the event of a financial downturn.
After years of building up a business, the day comes when the owner is looking towards retirement and has to decide what to do with their company. Options for a retiring small business owner in California include closing the business, passing it on to family members, and selling the company. ...
It's National Small Business Week! At Butterfield Schechter LLP, we provide our clients with all forms of business counseling and business planning. From business formation to employee benefit plans, our attorneys will help your business stay up to date with the latest regulatory changes while ta...
It's National Small Business Week! The U.S. Small Business Administration (SBA) spotlights our nation's 30 million small businesses. Register for the FREE National Small Business Week Virtual Conference hosted online by the SBA on May 7-8 from 8:00 a.m. to 2:30 p.m. PT. You will hear from industr...
Supermarkets and grocery stores are especially well-positioned for employee ownership. Three of the top 5 largest employee-owned companies are grocery stores. Employee stock ownership plans (ESOPs) can benefit privately-owned grocery stores in California, providing incentives for founders, owne...
An article in the Harvard Business Review evaluating the performance of employee stock ownership plans (ESOPs) found that ESOP-owned companies generally have faster growth than non-employee owned companies, in part due to the added value of employee participation, having a stake in the compan...
Senate Bill (SB-553) would provide an incentive for some California businesses to adopt employee stock ownership plans, better known as ESOPs.
National Employee Benefits Day is celebrated each year on April 2.
Senators introduced a bipartisan bill that would encourage employee stock ownership as a means of retirement savings for workers. U.S. Senators Pat Roberts (R-Kan.) and Ben Cardin (D-Md.) introduced Senate Bill 177 which would, in part, expand the creation of S Corporation ESOPs. Introduced o...
Family-owned companies often take pride in the reputation they have built up over the years. However, at some point, the owners may need to step down from the company. The founders may want the next generation to follow in the family business but the majority of family-owned companies only la...
On September 11, 2018, Governor Jerry Brown signed a new mediation bill into law that is intended to inform clients about confidentiality in the mediation process. The new law, which went into effect on January 1, 2019, requires lawyers to provide specific disclosures in writing and have the ...