Headlines about "ESOPs"
Gathered from the web by the editors at BenefitsLink.com.
Employee Ownership Update for May 15, 2012
NCEO Executive Director Loren Rodgers discusses the appointment of 22 new employee ownership research fellows at Rutgers, the Employee Ownership 100 update, employees voting against executive pay, a creative approach to stock purchase plans, and multinationals setting up employee ownership plans in Zimbabwe. (National Center for Employee Ownership)
[Official Guidance] 11th Circuit Adopts Moench Standard in Suit Over Home Depot ESOP (PDF)
"Because the purpose of a plan is set by its settlors (those who created it), that is the same thing as saying that a fiduciary abuses his discretion by acting in compliance with the directions of the plan only when the fiduciary could not have reasonably believed that the settlors would have intended for him to do so under the circumstances. That is the test.... The defendants were not required to depart from the Plan's directives regarding Home Depot stock just because they were aware that the stock price likely would fall." (Justia.com)
Employee Ownership Update for May 1, 2012
NCEO Executive Director Loren Rodgers discusses congressional testimony on defined contribution plans, record-breaking attendance at the NCEO/Beyster conference, the Innovations in Employee Ownership awards, the We the Owners film trailer, and upcoming employee ownership conferences. (National Center for Employee Ownership (NCEO))
[Guidance Overview] DOL Files Suit to Recover Losses to ESOP of California-Based Parrot Cellular
Quoting from the government press release: "The department's suit is based on an investigation conducted by [EBSA] that found violations of [ERISA].... The suit alleges that the defendants caused or permitted the ESOP to purchase ... stock for more than fair market value and that [the principal owner of that stock] enriched himself by millions of dollars at the expense of the plan and its participants." (Employee Benefits Security Administration)
Employee Ownership Update for April 16, 2012
NCEO Executive Director Loren Rodgers discusses new employee ownership fellowships at Rutgers University, two films on employee ownership, the Certified Equity Professional (CEP) exam, a new CEO at SAIC, and the OEOC conference. (National Center for Employee Ownership)
China's New Foreign Exchange Control Rule on Equity Incentive Plans for Employees in Chinese Affiliates
"New requirements for foreign exchange registration of equity incentive plans are now in effect. Overseas-listed companies that grant equity awards to employees of their Chinese affiliates should review their registration status and periodic filing schedules to make sure they are in compliance, especially in view of the new, shorter deadline for filing quarterly reports and the need to file amendments." (Pillsbury)
New publication: Alternative Paths to an ESOP Transition
ESOPs are flexible instruments, and there have been many varied and sometimes creative approaches to implementing them. In this issue brief, three companies that used ESOPs in three very different ways describe the process of implementing their plans and assuring a smooth transition. In the final article, a veteran ESOP consultant places these transactions in a broader context. (National Center for Employee Ownership (NCEO))
Floor Price Protection in ESOP Companies
The current excerpt from the Employee Ownership Report is Floor Price Protection in ESOP Companies, an article summarizing the issues raised by providing a floor price in an ESOP context. (The National Center for Employee Ownership (NCEO))
Recent Sixth Circuit Decision Makes It Tougher to Defend Plan Investment Decisions
"These holdings by the Sixth Circuit distinguish it from the rulings of other Circuit Courts.... ESOP fiduciaries ... may have to wait to rely on the presumption [of prudence] until there is a fully developed evidentiary record. Consequently, ESOP fiduciaries should be prepared to demonstrate prudence and reasonableness in their decisions surrounding the ESOP's investment in company stock.... The Sixth Circuit [also] held that the ERISA Section 404(c) safe harbor defense does not apply in this case because it does not relieve fiduciaries of the responsibility to monitor investments." (McDonald Hopkins LLC)
Employee Ownership Update for April 2, 2012
NCEO Executive Director Loren Rodgers discusses new initiatives from the Mondragon Cooperative Corporation, the Secretary of Labor"s comments on re-proposing the DOL's fiduciary rule, UK proposals on options and employee ownership, Deloitte's global share plan survey, low awareness of company facts among U.S. workers, and new employee ownership fellowships at Rutgers. (National Center for Employee Ownership)
ESOP Diversification (Part Four)
In the latest installment of her ESOP Operational Issues column on the NCEO Web site, Nancy Dittmer continues her discussion of ESOP diversification. (National Center for Employee Ownership)
The New ESOP Executive Compensation and Private Company Equity Compensation Surveys
For ESOP companies and private companies with equity plans, relevant, affordable compensation data is often difficult to find, and it may be available only for particular industries. Such industry surveys may not address the unique issues that employee ownership companies face. The NCEO 2011 surveys of executive compensation in ESOP companies and of equity compensation in private companies fill this gap. This issue brief summarizes the results, including illustrative graphs and tables. (National Center for Employee Ownership)
Employee Ownership Update for March 15, 2012
NCEO Executive Director Loren Rodgers discusses a report showing dismal employee engagement in the U.S., a Sixth Circuit decision breaking with other courts on the "Moench presumption," SEC challenges to pre-IPO trading in secondary markets, and IRS objections to floor price protection. (National Center for Employee Ownership)
[Opinion] ESOP Association Statement for Hearing on Treatment of Closely-Held Businesses in the Context of Tax Reform (PDF)
[House Committee on Ways and Means hearing, March 7, 2012.] '[T]he cost to the Treasury of the ESOP S regime is not the bulk of the so-called tax expenditures that encourage a policy that has tons, and yes, I say tons, of evidence from very reputable social and economic researchers that show employee-owned companies, in the vast majority of instances, are more productive, more profitable, and provide sustainable jobs that are locally-controlled here in the U.S." (The ESOP Association)
Employee Ownership Update for March 1, 2012
NCEO Executive Director Loren Rodgers discusses a proposal to tax large S corporations as C corporations, an SEC no-action letter stating RSUs do not count under shareholder limits, a proposed pro-ESOP law in Iowa, and employee ownership in South Africa. (National Center for Employee Ownership)
New publication: Floor Price Protection in ESOP Transactions
Many second-stage ESOP transactions take the ESOP ownership from a minority ownership position to controlling or total ownership. The effect is often a rapid decline in the stock price, which may reduce employee morale. A common way to address this is to provide floor price protection. This issue brief, written by a team of expert ESOP practitioners, discusses price protection, its general effects, its impact on valuation, and fiduciary perspectives. (National Center for Employee Ownership)
Ensure your Plan Participants are Prepared for a Secure Retirement
Defined Contribution Conference, March 11-13, in Miami. Learn from your peers through presentations and discussions on plan design, communications, investment options and more. FREE registration for qualified plan sponsors. (Pensions & Investments)
Avoid the Common Mistakes Affecting Plan Loans Webcast
Earn CE credit while ERISA expert, Charles Lockwood, JD, LLM, explains the administrative issues that affect plan loans. Have questions? Charles will address them either during or after the webcast. March 22nd at 2pm EST. (ASC)
[Guidance Overview] Allowing Employee Investment in ESOP or 401(k) Employer Stock Fund Becomes a Bigger Gamble: Sixth Circuit Decision in Pfeil v. State Street Bank & Trust Co.
"The Sixth Circuit has reversed the district court's dismissal of the GM ERISA stock-drop suit ... and is allowing the case to proceed. You may recall that we cautioned fiduciaries of ESOPs and 401(k) plans allowing investment in employer stock to keep an eye on this case because it could be a game-changer. And now it is." (Porter Wright)
[Opinion] President Obama's Corporate Tax Reform Proposal Negative Towards ESOPs, Especially ESOPs
"Our national leaders of both parties, need to understand that national policies to encourage employee stock ownership, and new policies to increase ownership among more working Americans, need to be considered as an effective way to ensure our national employment rate is where we all want it to be[.]" (The ESOP Association)
Employee Ownership Update for February 15, 2012
NCEO Executive Director Loren Rodgers discusses the DOL's re-proposal of its regulation on plan fiduciaries, the White House budget and ESOPs, a Stanford Webinar on exporting ownership culture to China, and the reaction to the Iowa governor's ESOP initiative. (National Center for Employee Ownership)
2011 Data on ESOP Executive Compensation (Employee Ownership Report excerpt)
The featured excerpt from the March-April 2012 Employee Ownership Report summarizes the results of the NCEO's 2011 ESOP Executive Compensation Survey. (National Center for Employee Ownership)
Employee Ownership Update for February 1, 2012
NCEO Executive Director Loren Rodgers discusses employee ownership in the 2010 General Social Survey, the continuing importance of ESPPs, Principal's 10 Best Companies for Employee Financial Security, employee ownership and charity, the April Employee Ownership Conference, and a different way of owning 'stock." (National Center for Employee Ownership)
The State of Broad-Based Employee Ownership Plans 2012
This report details the extent and growth of employee ownership through ESOPs, 401(k) plans, stock options, ESPPs, and other vehicles; summarizes the leading research on employee ownership and corporate performance; and discusses current challenges and prospects. (National Center for Employee Ownership)
DOL's Citigroup Amicus Brief, in Support of Appellants' Petition for Panel Rehearing
"The Secretary of Labor, who has primary authority for enforcing and administering Title I of ERISA, . . . agrees with the dissent that the panel's holdings represent 'both an alarming dilution' of ERISA 'and a windfall for fiduciaries, who may now avail themselves of the corporate benefits of [ESOPs] without the costs of complying with the statutorily mandated obligations of prudence.' . . . The issues are of exceptional importance under Federal Rules of Appellate Procedure . . . because they put hundreds of billions of dollars in pension plan assets at undue risk." (U.S. Department of Labor)
Employee Ownership Update for January 17, 2012
NCEO Executive Director Loren Rodgers discusses Iowa's ESOP initiative, research finding that shared capitalism companies are among the best to work for, Mitt Romney and the ESOP at Bain, employee ownership in the UK, the DOL's plans to re-propose its fiduciary regulations, and the NCEO board election. (National Center for Employee Ownership)
Company Ownership Through an ESOP Builds Employee Loyalty
"A Rutgers University study, done in 2000 but still cited in support of ESOPs, found that ESOP companies grew 2.3 percent to 2.4 percent faster after setting up their ESOP than would have been expected without it." (Trib Total Media, Inc.)
Incentives Like an ESOP Can Curb Turnover
"[R]esearch shows that workers who have financial skin in the game have an extra incentive to stay on the job. For 13 million employees in 11,300 U.S. companies, that 'skin' is company ownership through an ESOP. Stick with the company. Build a nest egg." (The Kansas City Star)
Employee Ownership Update for December 15, 2011
NCEO Executive Director Loren Rodgers discusses a SEC suit alleging an undervalued stock buyback, new data showing broad-based options decrease employee turnover, employee ownership in South Africa, the Penn program for ESOP company CEOs, and deadlines for the NCEO executive compensation survey and board nominations. (National Center for Employee Ownership)
New edition of The ESOP Committee Guide
This book is the definitive guide to creating, developing, and maintaining a successful ESOP committee, with information on everything from determining the mission of the committee to ensuring its continued effectiveness in the face of difficulties. The third edition updates existing material and adds four new chapters. (National Center for Employee Ownership)
Nancy Dittmer on ESOP Diversification (Part Three)
NCEO board member and ESOP expert Nancy Dittmer continues her discussion of ESOP diversification in this installment of her column on NCEO's Web site. (National Center for Employee Ownership)
IRS Employee Plans Office Facing Challenges to Improve Processing of ESOP Applications, IRS Official Says
"ESOP processing has faced a number of obstacles over the years. Initially, work on ESOPs was considered 'nonspecialized' and was assigned as general process work. In 2001, two developments triggered the need to develop a cadre of ESOP specialists: the detection of widespread abuses involving ESOPs, and the enactment of new requirements in Code Sec. 409(p)." (Wolters Kluwer Law & Business / CCH)
Updated List of Employee Ownership Plans in Major Public Companies
This list, updated and released in December 2011, shows which of the 900 largest publicly traded companies (the S&P 500 and the S&P mid-cap 400) have various forms of employee ownership, including stock options, stock purchase plans, ESOPs, 401(k) plans, and more. (National Center for Employee Ownership)
Employee Ownership Update for December 1, 2011
NCEO Executive Director Loren Rodgers discusses Berkshire Hathaway's impending acquisition of employee-owned Omaha World-Herald Co.; the NCEO's revised list of employee ownership plans in large public companies; Oxford awards for job creation in employee ownership companies; and NCEO board nominations. (National Center for Employee Ownership)
[Opinion] Does Employee Ownership Motivate People?
In his latest column, NCEO founder Corey Rosen writes that 'employee ownership' as through an ESOP, etc., 'doesn't have a strong motivational impact on its own'; rather, employees are motivated by 'a culture in which people are allowed to motivate themselves." (National Center for Employee Ownership)
New Edition of An Introduction to ESOPs
The NCEO has just released a new edition of An Introduction to ESOPs. This short book explains the rules, uses, benefits, and other aspects of employee stock ownership plans (ESOPs). It is useful as an introduction to the subject, as an accompaniment to a full-length book related to ESOPs, or as a concise reference for laypeople. Since the 1990s, it has been the NCEO's best-selling publication. It is now in its 12th edition. (National Center for Employee Ownership)
New publication: S Corporation ESOP Traps for the Unwary
This issue brief from the NCEO discusses pitfalls that S corporation ESOPs face and provides solutions to keep the ESOP and its corporate sponsor out of harm's way. (National Center for Employee Ownership)
Stock Ownership Guidelines Hard-Wired Into the Plan?
"I wanted to point out to readers a company that recently incorporated its stock ownership guidelines into its stock incentive plan document, which I had not seen previously. The amended Motricity, Inc. 2010 Long Term Incentive Plan, approved by stockholders on October 28, 2011, contains the following paragraph . . . ." (Michael S. Melbinger via Winston & Strawn LLP)
[Guidance Overview] Judicial Endorsement of the Moench Presumption Expands
"The Second Circuit now joins the Third, Fifth, Sixth, Seventh, and Ninth Circuits in endorsing a presumption of prudence in cases involving fiduciary conduct related to 401(k) plans, and more specifically employee stock option plans (ESOPs) and eligible individual account plans (EIAPs)." (fi360 Blog)
Employee Ownership Update for November 15, 2011
NCEO Executive Director Loren Rodgers discusses trends in company stock in 401(k) plans, the launch of the NCEO's third survey of executive compensation in ESOP companies, Innovations in Employee Ownership Award nominations, details on Zimbabwe's employee ownership plan, and nominations for the NCEO's board of directors. (National Center for Employee Ownership)
A Review of Employee Benefits Trends and Results Among 'The Principal 10 Best' Companies
"During the recent economic challenges, [companies named by The Principal Financial Group to a list of 'The Principal 10 Best Companies'] maintained robust benefits packages, with more of them increasing rather than decreasing retirement contributions during the past 10 years. Some shifted health insurance expenses onto employees, but a majority absorbed the cost themselves. Investing in wellness programs is a significant trend, driven by concern about the steadily rising cost of health care and hence the cost of health insurance. Another concern was how the changing health policy landscape will affect what benefits they can offer and what those benefits will cost." (Harvard Business Review)
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