Ziebart Now Employee Owned

Perhaps the employee owners of Avis can now take their cars to the employee owners of Ziebart for rust-proofing. Actually, it's just the franchiser that's now employee owned, not the franchises themselves. Still, the employees now own a $30 million- plus company.

Zions Bancorporation Completes Successful ESOARS Auction

On May 8, Zions Bancorporation successfully completed its auction of Employee Stock Option Appreciation Rights Securities (ESOARS). ESOARS are traded securities meant to track the value of employee stock options the bank has issued. Employees had received options at a strike price of $83.25.

Zynga, Facebook to Charge Employees to Sell Shares

Facebook and Zynga have both announced that they will charge employees substantial fees to sell their shares on secondary markets that have developed to buy stock in private companies.

Creating a "Sinking Fund" in an ESOP to Fund Repurchase Obligations

One of the ways to fund ESOP repurchase obligations is to create a "sinking fund" in the ESOP. This involves making contributions to the ESOP that are greater than what is needed on a current basis for distributions, thereby creating a fund that can be used to meet future liquidity needs.

Determining the Cost Basis of S Corporation Shares

As I mentioned in my last column, the status of the ESOP plan sponsor as an S corporation can trigger different consequences for the participants in such ESOP than if the plan sponsor were a C corporation.