Employee Ownership Blog

Huawei, the world's largest telecom equipment and communications electronics vendor, has long said that it is 99% owned by most of its 174,000 employees.

Parsons Corporation, a 100% ESOP-owned engineering company with 16,000 employees, has set the terms for its IPO. The ESOP will continue to own 80.8% of the shares. The offering is expected to raise over $500 million.

H.B. 1198 passed a committee vote in the Texas House of Representatives by 12-0. The critical step now is to get it to a vote because the session ends in one month. The bill would:

If you were not able to join us last week for our sold-out conference in Pittsburgh, some of the highlights were the record-setting attendance, the buzz of the conversations in the common spaces, and the keynote address facilitated by Christopher Mackin and featuring Heather Braimbridge-Cox (Wind

The "Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019" passed the Senate in April and is expected to pass in the House. It makes many changes to retirement law, but only one is likely to affect ESOPs.

California Republican Senator Scott Wilk has introduced SB-553, which would provide 100% ESOP-owned companies with a 3% bid preference on state contracts.

On April 2, the state of Massachusetts announced that it would restore funding for the Massachusetts Office of Employee Involvement and Ownership. The office will be staffed by two nonprofits, Working Wealth and the ICA Group.

In April, the IRS released an "issue snapshot" on how to prevent violations of Code Section 409(p), the part of the Internal Revenue Code designed to prevent the

U.S. Representatives Ron Kind (D-WI) and Jason Smith (R-MO) introduced the Promotion and Expansion of Private Employee Ownership Act, which will encourage the formation of employee-owned businesses and promote retirement savings through employee stock ownership plans in S corporations. Rep.

In late March, three ESOP companies announced that they would be acquired.

A March 22 article in the Denver Post noted that Colorado Governor Jared Polis (D) is working to promote employee ownership in Colorado.

On March 28, the Department of Labor sued Wilmington Trust N.A., alleging that it relied on a flawed valuation in a $46 million ESOP transaction involving Stargate Apparel Inc. and Rivstar Apparel Inc.