SG&F ESOP News | SG&F Law - Part 5

Introducing New Employees into ESOP Company Work Culture

Ginny Vanderslice, President of Praxis Consulting Group in Philadelphia, authored an article in the November 2011 issue of The ESOP Association’s ESOP Report newsletter which outlined case studies from successful ESOP companies on how to introduce new employees into your ESOP company’s work culture. Gardener’s Supply and King Arthur Flour, clients of our sister law firm, Steiker, Greenapple, & Fusco, P.C., were highlighted for their programs that immerse employees more deeply in understanding the ownership culture within their first year of ... Read more

Benefits of S Corporation ESOPs

This article from the Employee-Owned S Corporations of America (ESCA) website describes the benefits of S corporation ESOPs - from higher than average retirement account balances to the increase in employment at S corporation ESOP companies during the recession. Study results from the National Center for Employee Ownership (NCEO) and the recent introduction of the pro-ESOP bill (House Resolution 1244) are discussed. To read the full article, visit the Employee-Owned S Corporations of America website. Read more

Former Assistant Treasury Secretary Speaks in Support of S ESOPs

In a statement to the Senate Finance Committee during the September 15, 2011 hearing on “Tax Reform Options: Promoting Retirement Security,” a former Assistant Treasury Secretary to the Senate described the benefits of S corporation ESOPs. According to Phillip L. Swagel, who served as assistant secretary for economic policy at the Treasury Department during the George W. Bush administration, “S ESOPs make substantial contributions to workers’ retirement security. They do this by giving employees ownership of the company and building their ... Read more

PA Rep. Fitzpatrick Visits Modern Group

SES client Modern Group welcomed Representative Fitzpatrick from Pennsylvania's 8th District to tour their Bristol facility and meet with employees. Dave Griffith, CEO of Modern Group, gave the Congressman an overview of the company and its ESOP, and asked for his support of the current pro-ESOP bill in the House, HR 1244. He also requested that the Congressman voice his opposition to the proposed DOL regulation that would make appraisers ESOP fiduciaries. Rep. Fitzpatrick was supportive of both of these initiatives, ... Read more

Senate Introduces Pro-ESOP Bill

S. 1512 has been introduced by Senators Benjamin Cardin (D-MD), Pat Roberts (R-KS) and Olympia J. Snowe (R-ME) as the Senate counterpart to H.R. 1244, the “Promotion and Expansion of Private Employee Ownership Act of 2011.” If passed, S. 1512 will: Permit owners of S stock to sell the stock to an ESOP and defer the capital gains tax on his/her gain if the proceeds are reinvested in the equities of U.S. operating corporations as owners of C corporations stock have done ... Read more

SES Client Eileen Fisher Quoted on

Philadelphia, Pa. – September 16, 2011 – SES client Eileen Fisher is quoted in the How We Got Started section of "Over the years we considered whether we should sell the business or go public, but none of those things ever felt right. We tend to make longer-term decisions, so we thought reporting quarterly profits might not work for us. We also wanted our employees to have a sense of ownership. In the early days I gave people profit sharing. ... Read more

How an ESOP Can Boost Your Business

When business owners think about succession planning, they often picture selling to a competitor, a private equity firm or their management team. But there’s also a lesser-known option that can ensure business continuity while reaping tax benefits and motivating loyal employees — an Employee Stock Ownership Plan, or ESOP. To read the full story from the Northern California edition of Smart Business, visit Read more

Bi-Partisan Members of House Ways & Means Committee Introduce Pro-ESOP House Bill

House Resolution 1244, the Promotion and Expansion of Private Employee Ownership Act of 2011, was introduced by a bi-partisan group of key members of the House Ways and Means Committee. H.R. 1244 has four main objectives: Permits owners of S stock to sell the stock to an ESOP and defer the capital gains tax on his/her gain if the proceeds are reinvested in the equities of U.S. operating corporations Permits lenders to S corporations with 50% or more ESOP ownership to exclude ... Read more
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