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The Employee Ownership Update

Loren Rodgers

September 15, 2011

(Loren Rodgers)

Introducing the Equity Compensation Report

When it comes to stock options, restricted stock, and other forms of equity compensation, a review of existing publications gives the impression that these plans exist only in public companies and usually only apply to a minority of employees. Private companies and companies with broad-based plans will find information targeted specifically to them in the NCEO's new monthly periodical, the Equity Compensation Report. The first three issues will be available to everyone as they are released, but starting in December it will be a members-only benefit. You can download the September issue now at our page announcing the Equity Compensation Report.

Two Legal Staffing Companies Adopt ESOP

Mestel & Company and Hire Counsel, two companies that provide legal recruiting and staffing services, became the first companies in their field to adopt an ESOP (which will cover participants from both companies). The ESOP will cover employees and attorneys who work on a contract basis. The two companies, which have tripled in size over the past five years, have 22 offices and a network of over 50,000 attorneys. The press release provides additional details.

BNA to Be Acquired by Bloomberg

The Bureau of National Affairs (BNA), a pillar of inside-the-beltway journalism and an employee-owned company since 1947, has entered an agreement with Bloomberg, which plans to buy all of BNA's shares. The 1,465 employee-owners at BNA will receive $39.50 per share, valuing the company at $990 million. BNA covers legislative, tax, regulatory, and judicial developments in its periodicals and books.

Discounted CEP Registration for NCEO Members

The Certified Equity Professional Institute (CEPI) at Santa Clara University offers the only recognized certification for the equity compensation industry. Since the NCEO has long served on CEPI's board of advisors, the CEPI has offered to extend a $200 discount to NCEO members for the exam on November 5, 2011 (see conditions below). The full cost is $1,295 for U.S. registrations and $1,495 for non-U.S. registrations. The CEPI curriculum covers both ongoing and recent topics, including performance based awards, proxy disclosures, modification accounting, 6039 requirements, and IFRS 2.

To take advantage of this discount offer, contact the CEPI at 408/554-2187 or cepi@scu.edu by September 23, 2011. Eligible registrations include new Level 1, Level 2, or Level 3 registrations for individuals who are involved in administering or managing their own company's equity programs. There is no limit to the number of individuals at a company that can utilize this offer. Deferrals and re-tests are not eligible for a discount. Individuals already registered are not eligible for a retroactive discount. Candidates from service providers do not qualify. Questions regarding eligibility can be directed to the CEPI at 408/554-2187.

NCEO Sponsors E*Trade's Private Company Forum

The NCEO will sponsor A Forum for Private Companies on October 27, 2011 in Palo Alto, CA. The forum is an E*TRADE Directions Event, featuring expert-led sessions on trends and risks facing fast-growing private companies.

Participants will learn about challenges such as raising capital, preparing for an IPO, and providing equity incentives for key talent. The event will allow networking with peers as well as business leaders, and the NCEO's Corey Rosen and Achaessa James will present. The event is free, but you must register to attend. You can register online.

Employee Ownership on the Cover

The cover of the September issue of Business & Industry Connection asks its readers to "imagine the results when every employee is an owner." The cover story features Austin Industrial, a 7,000-employee company that manufactures and maintains power and other industrial facilities. The company's thrust has been "increased employee participation and ownership at all levels."

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