New Data Show Rapid Growth of Broad-Based Stock Options

A new survey of 1,108 companies by ShareData, a provider of software to administer employee stock option plans, shows a rapid increase in the growth of plans that provide stock options to most or all employees.

New Department of Labor Data on ESOPs

The Department of Labor has released its annual report on employee benefit plans, including employee stock ownership plans (ESOPs).

New Determination Letter Process

As of February 1, 2006, there is a new IRS determination letter procedure for qualified plans such as ESOPs and 401(k) plans. The new program requires that plans submit a determination letter to the IRS every five years based on an employer identification number used for federal tax purposes.

New Development: Net Loss Required in "Stock-Drop" Cases

The U.S. Court of Appeals for the Sixth Circuit upheld the dismissal of a stock-drop lawsuit against the fiduciaries of the KeyCorp 401(k) plan, finding that the plaintiff had not suffered net losses during the class period.