Employee Ownership

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Benefit Plan Cost Mitigation Alternatives in a COVID-19 Economic Downturn

As businesses struggle to come to grips with conducting “normal” operations in a “new normal” environment, the issue of cost reduction will certainly be on the table for many companies. One area that companies will likely be examining to reduce costs is employee benefits; here are some options for consideration: Set priorities. In looking for

Six Reasons Why Now Is A Good Time To Consider An ESOP

Dealing with challenges created by COVID-19 and facing a likely recession, many family-owned and private businesses have postponed thoughts of selling their businesses. But as owners become more adept at managing through the “new normal” – and especially as they eye potential tax changes next year — more of them will again consider their future

Benefits and Drawbacks of Employee Stock Ownership Plans

Have you ever heard of employee stock ownership plans? This is a concept that is also sometimes referred to as employee share ownership. Essentially, what it amounts to is that a company’s employees own shares in the business in which they work. The way employees determine how many shares they are due is through benchmarks like

Does The Way We Track Stock Ownership Cost Us Money?

Overstock.com will pay the first-of-its-kind digital voting series A-1 preferred stock (OSTKO) dividend on May 19. How the market will trade and value the security remains to be seen; no one has a crystal ball. But OSTKO, a DTC eligible security, is a baby step toward using distributed ledger technology to measure share ownership. A baby step for blockchain

CARES Act Provision May Help ESOP Companies

A CARES Act provision offers some relief to employee stock ownership plans by allowing the suspension of required minimum distributions for 2020. In addition to providing individual stimulus payments and other individual-oriented assistance, the CARES Act contains some provisions aimed at retirement plans, some of which are of particular interest to companies that maintain employee

Considerations For Those Contemplating Employee Ownership

“Treat employees like they make a difference and they will.” Jim Goodnight, CEO SAS Why consider employee ownership? Think about the first time you applied for a job or interviewed someone for a job. The conversation probably did not include a discussion of who owned the company. For public companies, this is not surprising, because

Coronavirus concerns for ESOPs and ESOP auditors

The coronavirus pandemic has presented new challenges to virtually every company and individual in every discipline in the current economy. Employee stock ownership plans (ESOPs) and their plan sponsors — as well as auditors of the plans — certainly will have new issues to consider as a result of the pandemic. Today most ESOP companies

Rethinking the Social Safety Net

Here are four specific suggestions on things to re-design in the American economy to better serve the middle class without becoming a welfare state: Make education more useful for future middle-class workers. Change how curricula is developed in every state to include active participation from the business community. Currently, this is largely the province of

How the best companies enact an ownership culture that propels them forward

Every year, around 400 of the best and most successful U.S. companies vie against one another to make it onto Fortune’s list of the ‘100 Best Companies to Work for in America’. In addition to the prestige of being named in the announcement via the well-respected magazine, inclusion also enables companies to attract better talent

CARES Act Provisions of Related ESOP-Owned Companies

On March 27, 2020, President Trump signed into law a massive $2 trillion stimulus bill, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act or the Act), aimed at shoring up the U.S. economy in light of the disruption caused by the coronavirus pandemic. In addition to the widely discussed individual stimulus payments,

Saratoga County-based company now boasts 88 millionaires on paper

Stewart’s Shops, the chain of convenience stores found across the Capital Region and beyond, has seen gas and coffee sales drop during the COVID-19 pandemic in keeping with the decreased commuter traffic. But the shops are selling more dairy and grocery items, spokeswoman Erica Komoroske said. That includes milk, butter, eggs and packaged ice cream.

Using employee stock ownership plans to empower workers and boost growth

An employee stock ownership plan, or ESOP, could be the key to unlocking a stronger workplace culture and improving your bottom line. Employee ownership may sound like a novel idea, but it’s a concept that’s been around for decades. The legal groundwork for today’s ESOPs was first laid within the 1974 Employee Retirement Income Security

When Should an Employer Consider an ESOP?

Employee Stock Ownership Plans (ESOPs) are popular both with owners looking for ways to increase employee engagement and involvement and with employees seeking to have some ownership in and benefit from the work they do beyond their salaries. For business owners, considering implementing an ESOP is one of many options they consider when looking at

Toward an Economic Democracy

The most fundamental tragedy of the coronavirus crisis is human. It is lives being lost. Somewhere close behind is the feeling of desperation shared by working people. In an economy where it is estimated that 50 percent of the labor force survives from paycheck to paycheck, we are facing an economic crisis of unprecedented proportions

Employee Owned Publix to hire ‘thousands’ amid disease spread

Publix announced Friday that it wants to hire “thousands” of new employees this month amid the coronavirus pandemic. The positions would be in stores and distribution centers and come as demand is increasing as coronavirus spreads. “We take pride in serving our communities during times of need, and with the unprecedented demand we are experiencing,

How Boston Is Becoming the City Where Workers Rule

It’s debate watch party night at Democracy Brewing in February, and as presidential candidates take the stage to sports-star hype introductions, the politics fans at this European-style beer hall are getting rowdy, like Patriots fans when Tom Brady takes the field. The biggest cheers come from two waiters when they see Bernie Sanders—the candidate who

Georgia Theatre Company Transitions to 100% Employee Ownership

It’s the ultimate bonus: Georgia Theatre Company (GTC), the 18th-largest theater circuit in North America, has rewarded the diligence and dedication of its roughly 700 employees by making them the owners of the company. This apparently unprecedented action by a movie-exhibition chain is made possible by the creation of an employee stock ownership plan (ESOP),

This Acquisition Won’t Hang Workers Out to Dry

Brett Jones plans to arrange at least sixteen acquisitions over the next five years. He just closed on the first one. Since they became widespread among private equity firms in the 1980s, acquisition strategies, including leveraged buyouts, have become a key part of the playbook leading to the demise of many iconic U.S. companies —

When staff run the show: the true benefits of employee ownership

The moment when staff at John Lewis and Waitrose are told the size of their bonus is always much-anticipated. This week’s announcement will be no different, except in one respect – staff will probably be handed a fraction of the usual 10% to 18% of salary. Last year it was 3%, this year it could

How early employees get ownership in startups

When looking at a job description, it’s often the salary that stands out. But the total compensation is a trickier puzzle to put together, with elements that might not be visible week-to-week, or in a single check. For one, there’s the total benefits package to consider, including health insurance, vacation days, retirement and more. Another