The Employee Ownership Update
May 1, 2015
Pro-ESOP Legislation Introduced in HouseOn April 29, Representatives Dave Reichert (R-WA) and Ron Kind (D-WI) introduced the Promotion and Expansion of Private Employee Ownership Act of 2015 (H.R. 2096). Rep. Reichert's announcement describes the bill as designed "to encourage owners of S Corporations to sell their stock to an ESOP, expand financing opportunities for S Corporation ESOPs, provide technical assistance for companies that may be interested in forming an S Corporation ESOP, and ensure that small businesses that become ESOPs retain their Small Business Association certification."
Rep. Kind said that "by making it easier for companies to become employee-owned, this legislation will not only grow the number of employee-owned businesses, it will provide retirement security to more Americans. Employee-owned companies perform better—not just for themselves but for every one of their employees as well." Both Reps. Kind and Reichert are on the House Ways and Means Committee.
The other original cosponsors of the bill, similar to legislation introduced in the last Congress, are Reps. Paulsen (R-MN), Blumenauer (D-OR), Tiberi (R-OH), Neal (D-MA), Boustany (R-LA), and Pascrell (D-NJ).
The Employee Ownership 100: Should Your Company Be on the List?The NCEO is currently compiling its annual list of the 100 largest employee-owned companies. To qualify for the list, companies must be majority-owned by an ESOP and/or some other employee ownership arrangement in which at least half of all full-time employees meeting basic service requirements participate. The list is ranked by the total number of all employees, full and part-time, whether in the ESOP or not.
Last year, the smallest company on the list had 1,150 employees. If your company might qualify (or come close to qualifying), please tell us a bit about you. If you have been on the list before, please update your information. Take our very brief online survey or contact Dallan Guzinski (firstname.lastname@example.org, 510-208-1301) by May 15.