Corey Rosen
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. The bill was introduced by Democrat Julian Cyr and referred to committee. Long-term capital gains in the state are taxed at 5%.
Madelyn Hammack
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 transformative experience at Cargas, where he developed expertise in direct employee ownership models. The conversation highlighted how employee ownership creates shared success while keeping businesses rooted in their communities.
Kimberly McCourtney
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 challenges...what should drive your thought process?” Ken brought his expertise spanning over 30 years in the ESOP space. His insights provided a valuable framework for understanding the factors that will shape business valuations in the coming year.
Loren Rodgers
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" votes from 17 Democratic senators; three Republicans opposed her confirmation.
Corey Rosen
Loren Rodgers
In December 2024, the U.S. Department of Labor (DOL) issued proposed rules that would govern the valuation of company stock in an ESOP. Although the Trump administration withdrew the rules in January, the 2022 WORK Act requires the DOL to issue valuation regulations, so while the fate of those withdrawn rules is uncertain, they provide insight into the DOL’s perspective under the Biden Administration and possibly the new administration. When new political leadership at the department is in office, a new proposal for the rules may be materially different from the withdrawn rules.
Loren Rodgers
Corey Rosen
Seventeen of the Forbes 2024 list of the largest 100 privately held companies (ranked by sales) have some form of employee ownership. Five are 100% ESOP-owned, four are minority ESOP-owned, two have profit-sharing plans primarily invested in company stock, one is an employee ownership trust, and one is a broad-based partnership available to employees at all levels. Supermarkets, convenience store chains, engineering, and construction are the most common industries among the employee ownership companies. We also compile a list of the largest employee-owned companies for our yearly Employee Ownership 100. That list includes only companies for which we have reliable external verification that their plans are broad-based, and it also focuses on majority and 100% employee-owned firms and the active participants they cover.
Scott Rodrick
Update: As of March 7, the recently terminated head of the Division of Employee Ownership is to be reinstated March 10.
The National Association of Plan Advisors (NAPA) reports that Hilary Abell, who in July 2024 was appointed as the head of the Division of Employee Ownership at the Employee Benefits Security Administration (EBSA) within the U.S. Department of Labor (DOL), has been terminated as part of a wave of actions across the U.S. government.
Corey Rosen
New York Assembly Bill 5649, authored by Democratic Assembly Member Stefani Zinerman, directs the New York State advisory panel on employee-owned enterprises to evaluate barriers to certification as minority- and women-owned businesses (MWBEs) for employee-owned businesses and recommend strategies for retaining the MWBE status of existing certified business enterprises when they become employee-owned. The commission was established in 2022 to report on how the state could encourage employee ownership but has yet to issue any recommendations. The NCEO has an article on ESOPs and preferred-status certification with background information and recommendations.
