ESOP Industry News
Howard's Appliance Celebrates Being 100% Employee Owned
November, 2011
The Los Angeles Times featured an article about Howard’s Appliance & Flat Screen Superstores, which has been 100% employee-owned since 2000.
The company, which started as a radio repair shop in San Gabriel, sold nearly half of the company over to the employees when the government approved employee stock ownership plans in 1976. Employees acquired 100% of the company in 2000. Howard Roach still retains his place as chairman of the board. …Read More..
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Mills James Produces Animated Film About ESOPs
November, 2011
Mills James, a comprehensive creative media production company based out of Columbus, Ohio has made an animated film explaining how their Employee Stock Ownership Plan (and how ESOPs in general) work. Mills James employs about 150 employees and specializes in the following areas: Teleproduction, Broadcast Production, Business Video, Meetings & Events, Web Interactive and Original TV Productions.
To read more about Mills James and their ESOP, you can visit their website here.
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Legislative Information: Pro-ESOP Bill — H.R. 1244
October, 2011
H.R. 1244, the “Promotion and Expansion of Private Employee Ownership Act of 2011,” was introduced March 29, 2011by a bi-partisan group of key members of the House Ways and Means Committee: Congressmen David G. Reichert (R-WA), Ron Kind (D-WI), Charles W. Boustany, Jr. (R-LA), Earl Blumenauer (D-OR), Erik Paulsen (R-MN), and Bill Pascrell (D-NJ).
“This bi-partisan declaration of support for employee ownership through the ESOP (employee stock ownership plan) model among privately …Read More..
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Great Falls Business Owners Explain "ESOPs"
October, 2011
Local business owners say they’re spreading the wealth in Great Falls by offering long term employees stock ownership plans or ESOP’s.
It’s a structure that is set up and its federally recognized, so the employees are then part of a trust that then owns either a 100% of the company or some portion of the company,” said Sletten President Erik Sletten.
Today at Sletten Construction company, ESOP’s were the main topic of …Read More..
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Read about the Cal-Tex Protective Coatings ESOP
October, 2011
Read the original posting at the Cal-Tex Website
Cal-Tex is 97% employee-owned through an Employee Stock Ownership Plan (ESOP).As the 2011 Grand Prize Winner of theNational Center for Employee Ownership’s Innovations in Ownership Award and the 2011 ESOP Association’s Best Communications Award (Small Company), Cal-Tex is committed to providing a company structure that will benefit the employee and the customer. If you are considering becoming a Cal-Tex employee or customer, …Read More..
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NCEO's: Employee Ownership Update for Oct. 3rd, 2011
October, 2011
Topics Covered:
Loren Rodgers
October 3, 2011
- Two M&A Transactions at MYI in One Week
- Documentary in Progress
- Department of Labor to Re-Propose Fiduciary Regulation
Click here to read the the update at the NCEO website Tweet
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ACG Kentucky panel talks about benefits of ESOPs
October, 2011
Click here to read the original article at bizjournals.com
For business owners who want to cash out but still oversee the direction of the company and take care of their workers, an employee stock ownership plan might be the best bet.
That was the message from panelists Tuesday morning at the monthly meeting of ACG Kentucky, the local affiliate of the Association for Corporate Growth.
Many entrepreneurs get caught up in the tax benefits of ESOPs, but sellers …Read More..
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National Van Lines Becomes ESOP-Owned
October, 2011
National Van Lines Inc. said it has changed the company’s structure, selling itself to an employee stock ownership plan entity.
The third-generation, family-run business said it has been working on transitioning to an ESOP-owned S Corp. structure since July 2010 effort to “find an ownership and liquidity succession plan that did not disrupt the culture or the people.”
The ESOP structure gives National Van Lines with tax savings, improved employee benefits and financial flexibility, the Broadview-based company said in a …Read More..
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ESOP Companies Report Positive 2010 Even Amid Slow Economic Recovery
October, 2011
WASHINGTON, Sept. 14, 2011 /PRNewswire-USNewswire/ — Results from the Employee Ownership Foundation’s 20th Annual Economic Performance Survey of ESOP (employee stock ownership plan) companies that are members of The ESOP Association show that ESOPs, while not immune to economic developments beyond their control, have seen an upturn over the past year. The survey shows ESOP companies, by significant percentages, continue to have increased share value, better productivity, and overwhelming support among leaders of the companies.
Since the survey’s beginnings 20 …Read More..
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September, 2011
NOVEMBER 1, 2004
The following article was originally published in Bloomberg Businessweek and written by Amey Stone
Employee ownership can be a powerful tool
Last November the 100 employees of Superior Plumbing & Heating, a mechanical contractor in Anchorage, Alaska, gathered on the snow-covered ground to celebrate their new status as full owners of the $20 million company. Cutting the ribbon and symbolically reopening the company was Jan Van Den Top, the 60-year-old president, who had sold his shares to …Read More..
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The Will-Burt Company Celebrates its 25th Anniversary as an Employee Owned Company
September, 2011
For additional information, contact: Angie Lamielle, Senior Marketing Associate 330-684-4002 alamielle@willburt.com
For Immediate Release: Monday, June 06, 2011
The Will-Burt Company is celebrating its 25th year as an Employee Owned Company. Will-Burt employees have been participating in the Employee Stock Ownership Program (ESOP) since its inception on December 31, 1985. Will-Burt will be holding a celebration for its employees and retirees on June 16, 2011 with a special recognition for over 60 employees who have participated in the ESOP …Read More..
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WinSystems, an Employee-Owned Corporation on Youtube
May, 2011
Here is a video posted by one of The Menke Group’s Clients:
WinSystems, an embedded PC designer and manufacturer, provides a high level of quality and customer service through an Employee Stock Ownership Plan (ESOP). This leads to employees holding a direct stake in maintaining a high level of customer service.
Here is the full press-release:
WinSystems Adopts Employee Stock Ownership Plan September 19, 2007, Embedded Systems …Read More..
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ESOP plans let founders cash out and employees cash in
May, 2011
By Nancy Mann Jackson, contributing writer June 17, 2010: 4:45 AM ET
(CNNMoney.com) — On his 81st birthday, entrepreneur Bob Moore signed the papers to hand nearly a third of his company over to his 200 employees. But it’s a gift Moore and his three partners hope will pay off for them as well: By launching an employee stock ownership plan, they’re creating an exit strategy for themselves from the business they’ve spent the past three decades building.
We’re growing …Read More..
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2011 Cost-of-Living Adjustments
May, 2011
The following is a list of affected sections of the Code and the 2010 limitations of interest to the ESOP community
Code Section Description 2010 Limitations 2011 Limitations 401(a)(17) Limit on the amount of annual compensation taken into account $245,000 $245,000 402(g)(1) Limitation on the exclusion for elective deferrals described in Section 402(g)(3) of the Code $16,500 $16,500 404(l) Limitation on the amount of annual compensation taken into account $245,000 $245,000 409(o)(1)(C)(ii) Dollar amount for determining the maximum account balance …Read More..
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ESOP: A New Tax Savings Tool for Owners of S Corporations
May, 2011
“A new dawn greets ESOP companies!”
“The Holy Grail of business opportunities beckons: ESOP companies can now operate tax free!”
Not since 1984, when the §1042 tax-free rollover was enacted, has the ESOP community bubbled with such enthusiasm.
Under the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, (“EGTRRA”), the ESOP’s share of S corporation earnings will not be subject to federal corporate taxation or to taxation as “unrelated business income tax,” unless the ESOP runs …Read More..
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ESOPs as Retirement Benefits: An Analysis of DOL Data
May, 2011
Fall 2010
Written by Loren Rogers
In a project funded by the Employee Ownership Foundation, the NCEO did an extensive analysis of ESOP companies using data from the US Department of Labor. Unlike prior research, the study carefully compiled data from multiple plans within a single company and used multiple years of data for each plan. It concluded that ESOP companies are more likely to offer a second defined contribution (DC) plan than non-ESOP companies are to offer any DC …Read More..
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May, 2011
August 11, 2010
The ESOP Association and the Employee Ownership Foundation released today the results of a survey conducted among the Association’s 1,400 corporate members in the first quarter of 2010 which confirms positive benchmarks for ESOP (employee stock ownership plan) companies. The company survey is conducted every five years and was last completed in 2005. Prior to 2005, the survey was completed in 2000. The eye-opening statistics of the 2010 survey are the increase in age of the ESOP …Read More..
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Ross Group Inc. Rewards Employees With Stock Ownership Plan
May, 2011
Ross Group Inc of Dayton, Ohio announced that the company has formed an Employee Stock Ownership Plan (ESOP) and has joined the growing list of companies whose employees are stockholders. “When the transaction is completed,” said Mr. Mark Ross, President and CEO, “the employees of Ross Group Inc will own just under 25 percent of the Company.”
Mr. Ross said, “We had an immediate need for one of our shareholders to exit, but beyond that, the ownership team wanted to …Read More..
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Clif Bar Announces ESOP Program
May, 2011
Wednesday, June 30, 2010
Clif Bar & Company announced the selling of family owned common stock to its employees through an employee stock ownership plan (ESOP). Employees through the ESOP own 20% of the company, while husband and wife owners Gary Erickson and Kit Crawford retain the remaining 80%.
No change in management structure will take place, with Erickson and Crawford remaining majority owners and co-CEOs of the company.
“All along we wanted to create a company where we would …Read More..
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PRESS RELEASE – Technomics, Inc. Benefits Employees with Stock Ownership Plan
May, 2011
FOR IMMEDIATE RELEASE
Technomics, Inc. Benefits Employees with Stock Ownership Plan
Arlington, VA – January 26, 2010 Rick Collins, President and CEO of Technomics, proudly informed employees on January 26, 2010 that the Company formed an Employee Stock Ownership Plan (ESOP) and, in doing so, has joined the growing list of companies whose employees are stakeholders. “The Plan has several objectives,” Mr. Collins indicated. “First, to provide ownership of the company to those that build the company; second, to provide …Read More..
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RESILIENCE AND RETIREMENT SECURITY: Performance of S-ESOP Firms in the Recession
May, 2011
Written by Phillip Swagel and Robert Carroll
Executive Summary
A study of a cross-section of Subchapter S firms with an Employee Stock Ownership Plan shows that S-ESOP companies performed better in 2008 compared to non-S-ESOP firms along a number of dimensions, including job creation, revenue growth, and providing for workers’ retirement security. The S-ESOPs paid their workers higher wages on average than other firms in the same industries, contributed more to their workers’ retirement security, and—crucially in a year of recession—hired workers when …Read More..
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ESOP: Employee Ownership of Companies on the Rise
May, 2011
The ESOP – Employee Stock Ownership Plan – is, slowly, on the rise. These worker-owned businesses are more productive and could benefit the American economy.
Shoppers eye goods at the bakery of King Arthur Flour Co. in Norwich, Vt. The employee-owned firm was able to expand from its niche to deliver a broad product line.
Norwich, Vt.
A decade ago, John Schock of Pasadena, Md., reached his mid-50s and a crossroads. He could …Read More..
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ESOPs on the Rise Among Small Businesses
May, 2011
Small companies are rushing to reward workers with employee stock ownership plans as low valuations make awarding shares more attractive
Bob Moore gathered three employee shifts together last month for pizza parties to celebrate his 81st birthday. But Moore, the founder and president of Bob’s Red Mill Natural Foods in Portland, Ore., also had a surprise announcement: He was giving his 200 employees the company he founded in 1978.
“I thought some of them were going …Read More..
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New Study Documents ESOP Account Balances
May, 2011
The NCEO has just completed an analysis of Form 5500 retirement plan filings filed by ESOP companies. The Form 5500 data are prone to considerable reporting and transcription error and should be used with caution, but many of the results described below are in accord with prior research, with our experience, and with best estimates from practitioners in the field. Among the companies studied, the average value of plan assets per participant is approximately $46,000. This compares to the average …Read More..
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