Jaymie Oviedo
January is here! After a year where professional development was not an option but a necessity, we find ourselves in a unique scenario where we can continue leveraging existing technologies to deliver the education and content you need. Together with our members, we made some phenomenal strides in 2020. In 2021, we aim to be intentional in the development of how we serve and connect with our members.
Loren Rodgers
On December 29, the New York Times ran a 2,000-word report on the Mondragon Cooperatives as part of its series on capitalism during the pandemic. For those unfamiliar with Mondragon, the Times covers the basics: it is a network of 96 enterprises primarily in the Basque region of Spain. Its member enterprises are in industries from manufacturing to engineering to retail, and together they have annual revenues of $14.5 billion and employ 70,000 people. Those workers own the company and govern it on a one-person-one-vote basis.
Loren Rodgers
The election for the NCEO’s board of directors opens today. Members in good standing of the NCEO will receive an email late tonight with a link to a confidential electronic ballot. Directors will be selected through this election and by appointment by the existing board. New directors will serve a three-year term from April 1, 2021, through March 31, 2024. Balloting will end on January 22.
Loren Rodgers
On December 31, 2020, the Rutgers University Institute for the Study of Employee Ownership and Profit Sharing announced the 16 academic fellows for the coming year. The institute’s current and former fellows form a global research network of more than 100 scholars, from students to faculty, in disciplines including economics, law, sociology, history, business, and much more. The network includes the NCEO's Nancy Wiefek, Corey Rosen, and Loren Rodgers.
Corey Rosen
The $900 billion economic relief bill that just passed both the Senate and the House of Representatives includes a new round of funding for the Paycheck Protection Program (PPP), providing an additional $284 billion for the program.
Nathan Nicholson
The 2020 ESOP Executive Compensation Survey report is now available. Our thanks go out to our survey respondents, who took time out of a chaotic year to contribute compensation data. We received valid questionnaires from 424 ESOP companies, the largest response in the survey’s 15-year history. Respondents have been emailed a code to receive a 75% discount on purchase of the report.
Loren Rodgers
This video is my look back at 2020. I hope you’ll take a few minutes to join me for a short trip into the recent past, because this video is my way of saying thank you.
Corey Rosen
The issue of whether trustees can and should override participant directions on offers to buy shares in a proposed acquisition of an ESOP company has been one of the most ambiguous areas of ESOP law and practice. New guidance from the U.S. Department of Labor (DOL) (29 CFR 2550.404a-1) on proxy voting of shares in retirement plans, including on environmental, social, and governance metrics, includes a brief section addressing this issue, essentially putting into regulatory form what had been just guidance.
Corey Rosen
Many ESOP companies are looking to diversify their board membership but have a hard time knowing where to look. Board members tend to come from existing networks of CEOs, and tend to be older white males. Research shows that cognitive diversity on boards leads to better decisions. Board members who can think differently about issues and who are willing to challenge existing norms can help companies move forward. Demographic diversity does not guarantee cognitive diversity, but it may help. For many companies, of course, diversity is a goal in itself even if it does not lead to different decisions.
