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The coronavirus crisis is certain to reduce the number of businesses transferring ownership to ESOPs in the short term.

The most effective employee ownership companies are the ones that generate and use the most good ideas from the most people about the most different things that can make the company better.

There is no “one size fits all” structure for governance that is correct for every ESOP company.

Under ERISA, the ESOP trust is the legal owner of the shares in an ESOP. The trustee votes these shares, usually at its discretion but occasionally at the direction of plan participants. That includes voting for the board.

Driven by engaged, entrepreneurial employees, employee-owned companies often emerge as industry leaders, pioneering best practices in a range of areas.

I know I’m mortal. So I started exploring my exit options in 1990, only seven years after I bought the company from its founder, JW McKinney.

One of the most contested and significant ESOP lawsuits in recent years was Perez v. GreatBanc Trust, which resulted in a $5.25 million settlement over the handling of the ESOP at Sierra Aluminum. This article gives some overlooked background about Sierra Aluminum's ESOP. 

HIGHLIGHTS: ● New DOL Fiduciary Settlement Agreement on ESOPs

HIGHLIGHTS: ERISA supersedes state tax law

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