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This paper provides model language for state employee ownership options. They include setting up a state employee ownership center; allowing professional corporations to be owned by ESOPs; allowing ESOP-owned companies that are majority-owned and/or run by qualifying individuals to qualify for state set-aside programs for women, minorities, and disabled veterans; and creating a tax credit for feasibility assessments for conversion to employee ownership.

For our counts of the numbers of ESOPs, related plans, and participants, see our Statistical Profile of Employee Ownership.

What Is Open-Book Management? Open-book management has been called the most important management trend in the country. Definitions of open-book management vary, but it is generally accepted to include the following components:

Broad-based employee ownership plans, primarily employee stock ownership plans (ESOPs) and worker-owned cooperatives, are a bipartisan, effective means to help create an economy that is both more productive and more able to provide financial security for workers in all sectors of the economy.

The Internal Revenue Code, which along with ERISA is one of the main laws that govern ESOPs, requires that ESOPs be “primarily” invested in company stock. ESOPs typically hold assets other than company stock. Sixty-one percent of the companies responding to the NCEO’s 2023 ESOP repurchase obligation survey have cash in the ESOP trust.

https://capitol.texas.gov/Search/DocViewer.aspx?ID=88RHB023891B&QueryText=%22Employee+Stock+Ownership+Plan%22&DocType=B

There has been increasing interest in employee ownership in state legislatures. This article describes existing state employee ownership legislation and key pending bills.

Incentive stock options (ISOs) can be an attractive way to reward employees and other service providers.

On average, ESOPs are wins for everyone—sellers, employees, and the company itself—but the average is pulled up by a handful of stellar ESOP companies.

To get the tax benefits employee stock ownership plans (ESOPs) provide, companies must abide by the rules designed to make sure taxpayers are getting their money's worth.