California Bill Would Create Contracting Set-Aside for ESOP Companies
California Republican Senator Suzette Valladares has introduced SB-713, a bill that would:
Our spring 2025 CEPI Exam Prep Course is now available for purchase. A live demo is available.
CONFERENCE REGISTRATION OPEN
Registration is open for the NCEO's 2025 Annual Employee Ownership Conference.
April 14–17 (preconference April 14) | Salt Lake City, UT
NEW SURVEY REPORT
The NCEO's 2024 ESOP Executive and Director Compensation Survey report is now available. Thank you to all of our 553 respondents!
Whether in person or online, print or digital, become an NCEO member to access countless resources and benefits that help you navigate employee ownership.
California Republican Senator Suzette Valladares has introduced SB-713, a bill that would:
Massachusetts Senate bill S. 1950, An Act to Promote Employee Ownership, would exempt capital gains from the sale of a Massachusetts business with 500 or fewer employees from capital gains taxation. ...
In a recent episode of The Alternative Exit Podcast, host Andy Farquharson sat down with Drew Mousetis, Executive Director of the Tandem Center for Shared Business Success. Drew shared his ...
During our February CEO Peer Network Meeting, we had the pleasure of welcoming guest speaker Ken Serwinski to our discussion on valuation. He posed a key question: “Valuation projection ...
By a vote of 67 to 32, the Senate on March 10, 2025, confirmed former U.S. representative Lori Chavez-DeRemer as the new secretary of labor. The bipartisan support for Chavez-DeRemer included "yes" ...
Webinar to cover ESOP issues in a new administration
Join our comprehensive webinar on year-end retirement plan administration. Learn how to coordinate TPAs, CPAs, trustees, and valuation firms in an effective planning call. Discover essential topics to address, develop an annual timeline, and clarify role responsibilities to ensure compliance and optimize your retirement plan management process.
This session will review the various rules relating to Rehired employees. The discussion will provide sample plan document language, assist with interpretation of when a former employee re-enters the plan, the effect on vesting as well as reinstatement of forfeited amounts.
Employee ownership is a term for any arrangement in which a company’s employees own shares in their company or the right to the value of shares in their company. Employee ownership is a broad concept that can take many forms, ranging from simple grants of shares to highly structured plans. The most common form of employee ownership in the U.S. is the employee stock ownership plan (ESOP), a highly tax-advantaged plan in which employees own shares through a trust funded by the company. Other forms of employee ownership include stock options, stock grants, synthetic equity (granting the right to the value of shares but not the shares themselves), worker cooperatives, and employee ownership trusts.
If you wonder if employee ownership might be a good fit for your company, learn more about its different forms in our free booklet Who Should Own Your Business After You?. If you already know an ESOP is the most likely candidate, our prefeasibility toolkit and tax advantage calculator can help you decide next steps. For other forms of employee ownership, visit this table for a side-by-side comparison.
The NCEO and the employee ownership community can help you make the most of your ESOP. Our resource toolkits are a good place to start to learn about best practices in corporate governance, repurchase obligation, financing, and more. You can also use our readymade communications resources and join peer networking groups or leadership cohorts.
We answer common questions about being a participant in an ESOP or you can learn why you might want to work at an employee-owned company. We can also help if you are curious about what the research says or if you are looking for readymade resources to help communicate employee ownership to your coworkers.