Corey Rosen
Canada Employee Ownership Trust Legislation Now Law
Updated June 25, 2024
Employee Ownership Blog
Liza Shifrin
Updated State-Specific Resources for Current and Prospective ESOPs
At the 2024 NCEO Annual Conference earlier this month, one of the questions I heard most often from attendees was "where can I find state-specific ESOP information?" Whether you’re a current ESOP and looking to connect with other employee-owned companies in your state, or you’re ESOP-curious and searching for statistics on your state’s ESOP breakdown, the NCEO is here to help.
Loren Rodgers
Private Equity Giant Blackstone Commits to Employee Stock Grants
On May 21, the Wall Street Journal reported that the alternative asset manager Blackstone would grant equity to the 18,000 employees at its portfolio company Copeland (alternative non-paywalled version at MSN). The Journal article states that under a new initiative Blackstone plans to announce this week, the practice of broad-based ownership interests for employees will apply “to all new deals going forward in which its private-equity business buys control of a company.”
Timothy Garbinsky
Employee Ownership, Corey Rosen Featured on Freakonomics Podcast
Following hot on the heels of the 60 Minutes episode this past weekend, employee ownership was the focal point of a recent episode of the popular podcast Freakonomics. Titled "Should Companies Be Owned By Their Workers?," the episode puts host Stephen J. Dubner in conversation with NCEO founder Corey Rosen as well as KKR's Pete Stavros and the Democracy Collaborative's Marjorie Kelly.
Timothy Garbinsky
DAWI's Melissa Hoover to Keynote Upcoming Vermont Conference
Our friends at the Vermont Employee Ownership Center are hosting their 22nd annual conference in a few short weeks, on May 31 at the University of Vermont's Davis Center. The event, as usual, promises to be an enriching experience for employee-owned businesses of all types, with sessions on recruitment and retention, ESOP transactions, worker cooperative buyouts, mental health, board composition, and more. There will also be networking for worker coops, ESOP companies, and other employee-owned businesses.
Timothy Garbinsky
Private Equity Continues to Make Inroads into the Employee Ownership Space
Since as far back as at least 2017, we've long been tracking the increased activity of private equity firms in the employee ownership space. Their foray into the world of ESOPs, broad-based equity, stock purchase plans, and the like, is, by now, somewhat old hat, but that doesn't stop it from being a frequent point of conversation, even contention, in employee ownership circles. But the fact remains that, no matter how you feel about their motivations or their methods, they are here, as evidenced by a feature on KKR, Pete Stavros, and Ownership Works on tonight's episode of 60 Minutes.
Corey Rosen
Employee Ownership Making Strides in South Africa
At the Inaugural Employee Share Ownership Conference in South Africa on April 23, leaders from government, unions, and business convened to review the progress made in spreading broad-based employee ownership in South Africa and what might be done to move it forward.
Corey Rosen
Wisconsin Bill Would Provide Tax Incentives for Employee Ownership Feasibility and Conversion
Wisconsin Assembly Bill 1217 would have provided that the “Wisconsin Economic Development Corporation may certify a business to claim a nonrefundable income tax credit for an amount equal to 70 percent of costs related to converting the business to a worker-owned cooperative or 50 percent of the costs related to converting the business to an employee ownership trust or an employee stock ownership plan. The credit is limited to a maximum amount of $100,000.” The bill would also have provided a state capital gains tax exemption for sales to ESOPs, worker cooperatives, or employee ownership trusts.
Corey Rosen
Bipartisan Bill Extends ESOP Company DoD Procurement Program to All Agencies
In 2022, the National Defense Authorization Act created the first-ever government contracting program to specifically encourage ESOPs. Section 874 of the new law created a Department of Defense (DoD) pilot program to allow companies that are or become 100% ESOP-owned to receive noncompete follow-on contracts for their work. The award is contingent on finding that the contractor’s performance is satisfactory or better. The program will run for five years, and the Government Accountability Office is required to provide an assessment of it within three years of the program’s enactment.