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ESOPs & Succession Planning

Posted by Marc S. Schechter | Mar 31, 2022 | 0 Comments

California is facing a Silver Tsunami of retiring business owners. There are many owners of small- to medium-sized businesses with no succession plan in place for when they retire. Business owners in California should consider an ESOP as an option to provide tax benefits and a ready buyer for their company when looking towards retirement. An ESOP allows owners and founders invested in the continued success of the company to maintain majority interest and control of the company to ensure the traditions of quality while rewarding employees who help build the company.

[BLOG SERIES - 6 OF 6] ESOPs: A Solution for The Great Resignation

Posted by Marc S. Schechter | Feb 14, 2022 | 0 Comments

[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 6 of 6: Can ESOPs Benefit Disadvantaged Communities? Employee share ownership has the unique benefit of distributing the success of the company among the employees who contributed to the company's growth. While employees generally benefit from ESOPs wherever the business is located, ESOPs in economically distressed communities could benefit the workers who live in those same communities...

[BLOG SERIES - 5 OF 6] ESOPs: A Solution for The Great Resignation

Posted by Marc S. Schechter | Feb 07, 2022 | 0 Comments

[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 5 of 6: How can an ESOP help in my specific industry? For certain industries, attracting and retaining workers is especially difficult in these times. The trucking, hospitality and grocery industries are no stranger to these perils. Learn more about how ESOPs can help in various industries.

[BLOG SERIES - 4 OF 6] ESOPs: A Solution for The Great Resignation

Posted by Marc S. Schechter | Jan 31, 2022 | 0 Comments

[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 4 of 6: Why are ESOPs an effective tool in addressing high turnover? An Employee Stock Ownership Plan (ESOP) provides a way to reward employees for their hard work by allowing them to share in the growth in value of the company. This gives employees an incentive to see the company thrive and continue to grow. With a long-term interest in the business, it also encourages employees to stay with the company, saving the company costs associated with high turnover rates.

[BLOG SERIES - 2 OF 6] ESOPs: A Solution for The Great Resignation

Posted by Marc S. Schechter | Jan 18, 2022 | 0 Comments

[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 2 of 6: What are the benefits of an ESOP? One of the benefits of an ESOP is the understanding that employees who have an ownership interest in the company will be encouraged to do what is best for the company's financial interest. As shareholders in the company through participation in the ESOP, the employee has a financial incentive to see the company succeed...

2022 ESOP Legislation Update: History Made in Federal Government First Set Aside Program for Wholly Owned ESOP Contractors

Posted by Marc S. Schechter | Jan 12, 2022 | 0 Comments

On December 27, 2021, the National Defense Authorization Action (NDAA) for Fiscal Year 2022 was signed into law and made ESOP history. This is the first ever set aside program for federal government contractors who are 100% ESOP-owned to be eligible for noncompete follow-on contracts, subject to satisfactory performance. The pilot program is effective January 1, 2022, for a duration of five years.

[BLOG SERIES - 1 OF 6] ESOPs: A Solution for The Great Resignation

Posted by Marc S. Schechter | Jan 10, 2022 | 0 Comments

[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 1 of 6: What is an ESOP? An Employee Stock Ownership Plan (ESOP) is a qualified retirement plan that invests primarily in employer securities. ESOPs allow employees to share in ownership of their employer. Eligible employees are provided stock ownership as a benefit of working for the company. There are many benefits to providing an ESOP to employees...

Reducing High Turnover in Trucking with ESOPs

Posted by Marc S. Schechter | Oct 13, 2021 | 0 Comments

Employee turnover is one of the most challenging issues facing many industries in the U.S. With so much spent on hiring, training, on-boarding, and getting workers up to speed, a short turnover period may cost the company more than the worker added. Many employers are struggling to address the issue, especially in times where the unemployment rate remains so low.  The trucking industry has been dealing with high turnover rates for years. Some trucking and transportation companies are learning from other employee-owned businesses and have seen results in transitioning the company to an employee-ownership model, including Employee Stock Ownership Plans (ESOPs). ESOPs often have much higher retention rates, in addition to the other benefits of giving workers a financial interest in their future with the company.  

Founding Partner Marc Schechter to Speak on The Decade of the ESOP: Economic Recovery, Racial Justice and Equity at National Center for Employee Ownership (NCEO) Fall ESOP Forum

Posted by Marc S. Schechter | Sep 14, 2021 | 0 Comments

Join Founding Partner, Marc Schechter, on September 22, 2021, at the National Center for Employee Ownership (NCEO) Fall ESOP Forum, as he shares his insight on The Decade of the ESOP: Economic Recovery, Racial Justice and Equity. The NCEO Fall ESOP Forum provides information, ideas, and advice yo...

American Craft Beer Week, May 13–19: Untapped ESOPs - Blood, Sweat & Beer: Why ESOPs & Breweries Go Hand-in-Hand

Posted by Marc S. Schechter | May 13, 2019 | 0 Comments

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.

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