Income inequality, financial crisis and the rise of Europe’s far right

Destinations by Design (DBD), a provider of high-quality destination management and event services to the incentive and corporate markets in Las Vegas for 28 years, has announced that effective November 5, 2018, the company’s stock has been sold to its employees through an Employee Stock Ownership Plan (ESOP). Representing a tangible way to reward those who have

Company credits growth to ESOP structure

Established in 1960 by Gordon “Buck” Horbuck and his wife, Ira, B&I Contracting began the transition into an employee-owned company in 1986. It completed it in 1991. The move to what's commonly referred to as an ESOP, at least based on share price, has been nothing short of remarkable: privately-held shares of the company are now worth

Whole Foods employees step up efforts to unionize

A group of Whole Foods employees stepped up efforts to unionize the grocery chain in an email blasted to thousands of workers Thursday, citing a laundry list of grievances stemming from Amazon’s purchase of the company last year. The group set up a forum on messaging app Slack called Whole Worker that allows members to anonymously

5 things to know about buying a company with an ESOP

One of the management team members let out a gasp. Two others shook their heads in disbelief and angst. The senior leader on their team had just informed them that the company they had been strategically targeting over the last several months was employee-owned, or at least partially employee-owned, through an Employee Stock Ownership Plan

How May The New Tax Act Affect Your ESOP?

The Tax Cuts and Jobs Act of 2018 (the “Act”) was signed into law by President Trump on December 22, 2017. It is heralded as making the most significant changes in corporate taxation in the US in more than 30 years. The Act makes changes to C corporations, S corporations and other pass-through entities. Some

Employee ownership embraced by green-energy pioneers

Three pioneers of the solar industry in the Bay Area are in different stages of transferring the businesses they created, but they are all traveling on a similar road. They are all transferring the ownership of their businesses to their employees. SOLARCRAFT Bill Stewart is the former CEO and co-owner of SolarCraft, a 34-year-old solar

A Guide to Employee Stock Option Plans

Employers can compensate their employees in three primary forms: cash, benefits and stock. Cash compensation - as would be expected - includes hourly wages, salaries, bonuses, contract income, benefit plan payouts and matching retirement plan contributions. Benefits include vacation, sick time, insurance, tuition, childcare, and other perks like expense accounts and company vehicles. Employers can

Two ESOP Bills Would Promote Employee Ownership

Two bills on employee stock ownership plans (ESOPs) have passed without dissent in the Small Business Committees in the House and the Senate, and both have bipartisan support. By unanimous vote, the House Small Business Committee passed the Main Street Employee Ownership Act, sponsored by Nydia Velaquez (D-NY), with a friendly amendment from Steve Chabot (R-OH). Kirsten

2018-03-20T05:42:16+00:00Tags: , |

ESOP Knowledge Can Provide Real Adviser Differentiation

When it comes to retirement and business succession planning, survey data shows clearly that small business owners have given relatively little thought to how they’ll shift into retirement or enact an exit strategy. According to Jerry Ripperger, vice president of consulting at Principal, more than 70% of business owners in the U.S. do not have

Joy Cone reaches a milestone that’s been a century in the baking

Here’s the scoop: Joy Cone Co. is celebrating its 100th anniversary. And in recent years the company has been on a delicious ride of expansions. What started out as a small local operation is now the world’s largest ice cream cone company. Producing more than 1.5 billion cones a year, it has operations in Hermitage,

Using ESOPs to Grow Your Business and Build a Dedicated Workforce – Part 2

Unlike other methods of raising capital, because an ESOP is also an employee retirement plan, the ESOP can also serve as a powerful engine for attracting and maintaining a competent and committed workforce. These goals are wholly complementary and achievement of the latter may well serve to insure the success of the former.  Here are

Using ESOPs to Grow Your Business and Build a Dedicated Workforce – Part 1

The “grow or die” business ethos may have been discredited, but sometimes growth is essential to maintain market share or fend off challenges from competitors. A business growth strategy can take many forms, such as expanding capacity or a strategic acquisition, but the common element is the need for capital. A great strategy will come

It’s Time for President Trump to Seize the Ownership Solution

Because Trump Administration officials’ conflicts of interest have dominated the recent headlines, it’s time for the President to heed the Wall Street Journal’s pre-inauguration advice to liquidate his business holdings to avoid being “accused of a pecuniary motive any time he takes a policy position." The paper’s editorial board asserted that “one reason 60 million

To attract top talent, USA Mortgage turns ownership over to its workers

USA Mortgage's owner is offering an employee stock ownership plan with the aim of helping it staff up as it expands outside its home market. Full-time staff members now can receive shares in USA Mortgage's owner, DAS Acquisition Co., if they complete 160 hours of service and meet other qualifying criteria. Employees are fully vested

APPVION employees set to lose part of retirement funds

Employees at Appleton paper company APPVION are learning about the fallout from the company's bankruptcy filing. Earlier this month, APPVION agreed to a deal with a group of lenders to purchase its assets after it filed for Chapter 11 bankruptcy protection last year. The moves doesn't just mean people will lose their jobs, some are

What can be done for the suffering working class in the US?

The low income working class is one of the largest groups in America.  You can spot its members working at Wal-Mart or McDonalds, in large or small factories, in clerical jobs, and toiling in agricultural areas.  This group includes single individuals, unmarried cohabitors, married childless couples, and families.  The common denominator is that they are

Why ESOPs are a complete failure in India

While Silicon Valley companies like Facebook and Google have created thousands of millionaires through stock option programs, the same financial instruments are producing misery in India. Despite a surge in the number of startups, few workers have benefited from options. Many companies don’t pay out to employees because they struggle financially; just as often, founders

Appvion workers learn their employee stock is likely worthless

Appvion’s public announcement last week of its proposed sale left out a significant detail. The paper company has an Employee Stock Ownership Plan (ESOP), which means the company is owned by its employees. If the proposed $325 million bid by an unnamed lender is successful, the ESOP will have no value and employees will lose the shares they expected