Podcast: Discussing and Demystifying the IRS News Release on ESOPs
(A)ESOP's Fables - The Income and Estate Tax-Free ESOP
Investment Management Update – Exit Strategies
ESOPs: A Path to Bank Independence
Owners of closely held businesses, particularly first-generation owners, often have a difficult time finding a suitable succession plan. These owners are faced not only with phasing out of their labor of love, but choosing a...more
Since their establishment in 1974, Employee Stock Ownership Plans (“ESOPs”) have become a popular and effective mechanism for private companies (both C corporations and S corporations) to provide employees an opportunity to...more
Following up on our first blog post about employee stock ownership plans (ESOPs) for construction companies, this post addresses surety bond requirements as well as the way in which ESOPs can incentivize employees and...more
Wichtiger Hinweis: Die folgenden (rechtlichen) Ausführungen dienen nur der allgemeinen Information, sind nicht abschließend und stellen keine rechtliche, steuerrechtliche oder sonstige Beratung dar. ...more
October is Employee Ownership Month. Employee ownership can take many forms, from 100% employee ownership through an ESOP or a cooperative to synthetic equity plans where no actual equity is sold, but employees participate...more
Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for the week of August 7, 2023 – August 11, 2023....more
Recently, the Department of Defense (“DoD”) issued a memorandum to launch a pilot program that will enable certain contractors owned under an employee stock ownership plan (“ESOP”) to receive sole source follow-on awards....more
On May 5, 2022, McDermott Partner Allison Wilkerson delivered a presentation during the 2022 TEA National Conference titled “Mature ESOPs: Remodeling the House You Own.” Her presentation focused on the traits of a sustainable...more
For over 20 years, Congress has provided powerful incentives for S corporations to sponsor employee stock ownership plans (“ESOPs”) through the tax code provisions that exempt all of the income of a 100% ESOP-owned S...more
The Fourth Circuit Court of Appeals has provided relief to a defendant who sold shares of company stock to an employee stock ownership plan (“ESOP”) by rejecting the district court’s legal conclusion concerning the...more
Succession planning, the art of ensuring that a family business successfully outlasts its founding generation, is a perpetual issue for family business owners. Employee stock ownership plans (ESOPs) can be a valuable, but...more
The Federal District Court for Hawaii recently determined that no violations of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) were established by the U.S. Department of Labor (“DOL”) in a breach of...more
Mitarbeiterbeteiligungsprogramme spielen für junge Unternehmen eine entscheidende Rolle bei der Gewinnung und Bindung von Top-Talenten. Eine Beteiligung am Unternehmen belohnt Mitarbeiterinnen und Mitarbeiter dafür, dass sie...more
Employee-ownership programs (or in short "ESOPs") play a critical role in attracting and retaining top talent to fledgling young companies. Stock options reward employees for taking the risk of joining a young, unproven...more
The Second Circuit sent shock waves through the community of ERISA stock-drop practitioners late last year in Jander v. Retirement Plans Committee of IBM by finding plan participants had plausibly alleged a breach of duty of...more
Identifying an employer’s highly compensated employees is crucial to the administration of qualified retirement plans, as well as 403(b) plans that provide employer contributions. This post provides an overview of the rules...more
Taking cues from Colorado, Missouri, Pennsylvania, Iowa, New Jersey, and Virginia, all of which have recently enacted legislation supporting and encouraging the establishment of ESOPs, the states of Texas, Indiana, and...more
• The U.S. Department of Labor (DOL) closed out 2017 by entering into yet another settlement agreement with the trustee of an employee stock ownership plan (ESOP). • The latest agreement (the Alpha Agreement) requires Alpha...more
After some speculation about a delay in implementation of the final rules on claims adjudication of disability claims under welfare and retirement plans (the Final Rule), the US Department of Labor (DOL) confirmed that the...more
Through a series of recent settlements, the US Department of Labor has outlined the process steps fiduciaries should follow in connection with a transaction involving a purchase from, or sale to, an employee stock ownership...more
One of the most difficult challenges for owners of family-owned businesses is finding a way to turn their equity in the business into cash. Also, after putting years of hard work into a business, owners often have a desire...more
Over the years, employee stock ownership plans (ESOP) have evolved in many ways. Currently, ESOP transactions began to resemble traditional M&A transactions including financial structures, warrants and market rate sub-debt....more
The Baby Boomer business owner has worked hard for a lifetime. The company is thriving. But retirement is in sight, and a big question looms: How do I convert a lifetime of hard work into a comfortable retirement income?...more