ESOP Industry News

US Capitol building with red-blue color filter
The Employee Ownership Fairness Act of 2025: A Game-Changer for ESOP Companies and Their People
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Big news is brewing in Washington that could reshape the landscape for ESOP-owned companies The Employee Ownership Fairness Act of 2025, recently introduced in Congress, proposes substantial increases in ESOP contribution limits and ESOP participant allocation limits—changes that would be wholly positive for companies, owners, and employee participants alike. The proposed Employee Ownership Fairness Act…

Volunteer team and colorful urban planning illustration.
M-Group Becomes Employee-Owned

Campbell, CA – M-Group, a leading urban planning firm in the San Francisco Bay Area, has transitioned to an Employee Ownership Model (ESOP) with the guidance of The Menke Group, America’s leading ESOP advisory firm. This transition secures the company’s future, rewards employees for their contributions, and ensures long-term stability for its customers and community.…

Nor-Cal Pipeline Services crew working on underground utility infrastructure at night, highlighting the benefits of employee ownership through an ESOP.
Legacy Utility Group Transitions to Employee Ownership: A Win for Employees, Customers, and the Community

How Employee Ownership Secures the Future for Legacy Utility Group Legacy Utility Group, a premier infrastructure contractor based in Roseville, California, has made a transformational shift to employee ownership by establishing an Employee Stock Ownership Plan (ESOP). This strategic move not only secures the company’s long-term future but also empowers its workforce, reinforcing a culture…

Oliver's Market 100% employee owned banner.
Oliver’s Market Becomes 100% Employee-Owned: A Commitment to Independence and Community

For CEOs exploring the transformative potential of Employee Stock Ownership Plans (ESOPs), the case of Oliver’s Market, a California-based grocery chain, offers an inspiring roadmap. Oliver’s has long been a staple in Sonoma County, known for its commitment to local sourcing, exceptional customer service, and strong community ties.​ Oliver’s began its ESOP journey in 2017…

Corovan team celebrating employee ownership
Corovan’s Transformation to Employee Ownership

The Historical Evolution of Corovan Corovan’s journey from a small moving service to the largest commercial mover in the Western United States is a testament to its adaptability and forward-thinking strategies. Founded in 1948 by Richard T. Schmitz, Corovan initially offered residential moving services. By 1955, it expanded its horizons by becoming an agent for…

Collage of employee-owned buildings and professionals.
A Fireside Chat with Ringland-Johnson
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As part of The Menke Group’s fiftieth anniversary celebration, our CEO, Trevor Gilmore, is holding a series of virtual ‘fireside chats’ with our clients to discuss their ESOP journeys. Brent Johnson, CEO of Ringland-Johnson, shared his insights recently. Ringland-Johnson is one of the top industrial and commercial construction firms in the Midwest with a history…

Modern apartment complex with illuminated pool at night.
AEC Electric Works with The Menke Group to Adopt the Employee Ownership Model with an Employee Stock Ownership Plan (ESOP)

Burlingame, CA, September 24, 2024 – The Menke Group, the leading single-source Employee Stock Ownership Plan (ESOP) provider in the United States, announced that AEC Electric, a commercial electrical contractor covering all of Arizona, has become 100 percent employee-owned with the help of The Menke Group. The ESOP plan extends ownership of the company to…

Menke 50 years anniversary celebration graphic
50th Anniversary Marks Change in Executive Leadership as Trevor Gilmore Assumes CEO Role

Burlingame, CA, August 28, 2024 – The Menke Group, the leading single-source Employee Stock Ownership Plan (ESOP) provider in the United States, announced that 2024 marks its fiftieth anniversary of advising companies on designing and managing ESOPs. In addition, the company announced that Trevor Gilmore, former CFO and COO of The Menke Group, was promoted…

Lunch and Learn ESOP 101 event ad
Join Us for a Special Lunch & Learn: ESOP 101
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Lunch & Learn: ESOP 101 We are pleased to invite you to an exclusive Lunch & Learn event, where you’ll have the opportunity to explore the benefits of selling your business to an Employee Stock Ownership Plan (ESOP). This event, hosted by JPMorgan Chase and The Menke Group, is designed specifically for business owners who…

Cityscape showing old and modern urban architecture merging.
Menke: Celebrating 50 Years – A Timeline of ESOP Excellence

As we celebrate our 50th anniversary, take a tour of the history of The Menke Group and ESOPs. 1974 The Menke Group, founded by John D. Menke, is incorporated in June. Employee Retirement Income Security Act (ERISA), including ESOP provisions drafted by John D. Menke, is signed into law on September 2. 1975-1985 1975 John…

Colorful cityscape with data points and trending lines.
Reflections on the 50th Anniversary of The Menke Group, Inc.

IRS qualified stock bonus plans and profit-sharing plans have existed in this country since they were first authorized by the Revenue Act of 1921. However, during the ensuing years very few stock bonus plans existed, and most of them were used by publicly traded companies as an employee incentive plan. Instead, most public-traded companies offered…

Conference attendees watching a Let's Talk Montana presentation.
Matt Nels to Speak at ‘Let’s Talk ESOPs’ Event in Montana
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Employee Stock Ownership Plans (ESOPs) stand at the forefront of transforming how businesses view and engage their workforce. These plans not only offer a route to employee ownership but foster a culture of involvement, commitment, and shared success. The upcoming ‘Let’s Talk ESOPs’ event in Montana, slated for Wednesday, July 31, 2024, at Pacific Steel…

Infographic highlighting the importance of SOC 1 and SOC 2 compliance for data security and trust.
Why SOC 1 and SOC 2 Matter for Menke and Our Clients
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Trust and security are more important than ever, and when it comes to your company’s ESOP, this is especially true. Employees and stakeholders must know that their data is safe and that related reporting processes are managed rigorously. SOC 1 and SOC 2 reports, produced by an independent certified public accounting firm following a comprehensive…

AV Construction Employee Stock OWnership Plan
AV Construction Works with The Menke Group to Adopt the Employee Ownership Model with an Employee Stock Ownership Plan (ESOP)
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Fountain Valley, CA, April 17, 2024 – The Menke Group, a leading full-service ESOP provider, announced that AV Construction, a renowned healthcare development firm based in Fountain Valley, has become 100 percent employee owned with the help of The Menke Group. The Menke Group will assist AV Construction to extend ownership of the company to…

ESOP Contribution Limits 2024
Contribution and Allocation Limitations
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CONTRIBUTION AND ALLOCATION LIMITATIONS FOR PLAN YEARS ENDING IN 2024 Date: April 2024 C CORPORATION CONTRIBUTION LIMITATIONS (Sec. 404 of the Code): Example: (The Sec. 404 limit is calculated for all employer plans in the aggregate.) Sec. 404 Gross Compensation 1 $345,000.00 Less Sec. 401(k) Salary Reduction 0.00 Less Sec. 125 Salary Reduction 0.00 Net…

IRS Releases Retirement Plan Limits for 2024
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On October 12, 2023, the Social Security Administration (SSA) announced the 2024 Social Security Wage base increase from $160,200 to $168,600. The IRS (Internal Revenue Service) announced the 2024 cost-of-living adjustments for various retirement plan limits on November 1, 2023. Below are selected adjustments applicable to employer-sponsored retirement plans effective January 1, 2024. Additional details…

Matrix HG ESOP Owners
Matrix HG Works with The Menke Group to Adopt the Employee Ownership Model with an Employee Stock Ownership Plan (ESOP)
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San Mateo, CA, April 2, 2024 – The Menke Group, a leading full-service ESOP provider, announced that Matrix HG, a Concord-based innovator serving the San Francisco Bay Area with commercial HVAC systems, has become 100 percent employee owned with the help of The Menke Group. The Menke Group will assist Matrix HG to extend ownership…

Zepnick Employee Owners in Action
Zepnick Solutions: It starts with an idea.
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In 2000, Jody Zepnick, founder of Zepnick Solutions, had an idea. He wanted to create a business that would not only serve a growing niche — manufacturing automation — but would also be a place that people want to work for. Fast forward 24 years, Zepnick has provided engineering solutions and equipment for automation to…

Brown Construction Employee Stock Ownership Plan
Brown Construction Works with Menke to Become 100% Employee-Owned with an Employee Stock Ownership Plan (ESOP)
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San Mateo, CA, March 12, 2024 – The Menke Group, a leading full-service ESOP provider, announced that Brown Construction Incorporated, one of the largest general contractors in the greater Sacramento area and ENR Top 400 general contractor, has become 100% employee-owned with the help of The Menke Group. The Menke Group enabled Brown Construction to…

Man viewing employee stock ownership plan presentation on computer screen.
Upcoming Webinar: How Business Owners, Management, and Employees Can Benefit from ESOPs in 2025!
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Join us for a free, 90-minute web seminar on Wednesday, November 20th, 2024, where industry experts will guide you through the essential benefits of ESOPs. You'll learn how ESOPs can be structured to meet your specific business needs, ensuring the sustainability and success of your company in 2024 and beyond.

Graduating Accountants Rate ESOP
Can ESOPs Expand the Shrinking Pool of Accountants?

As more accountants retire from the profession, they are not being replaced by new practitioners. A recent Wall Street Journal article shone a spotlight on a disturbing trend: the number of college students graduating with a bachelor’s degree in accounting dropped by almost eight percent from the previous year, according to a study by the…

Employee Ownership: Building Resilience and Security

A recent study commissioned by the Employee-Owned S Corporations of America (ESCA) has unveiled a compelling narrative – workers who own their companies through Employee Stock Ownership Plans (ESOPs) enjoy significantly greater employment advantages compared to the broader American workforce. Employee-owned S corporations excel in employee retention, boasting a corporate culture that fosters worker satisfaction.…

Bipartisan Legislation Aims to Streamline S-Corp ESOP Implementation for Businesses
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Congress is continuing its support for employee ownership in general and ESOPs in particular with the introduction of bipartisan legislation designed to simplify the process of establishing Employee Stock Ownership Plans (ESOPs) for S-Corps. The Promotion and Expansion of Private Employee Ownership Act aims to address the barriers that have historically hindered S-Corp companies from…

BDO’s Employee Stock Ownership Plan: A Bold Move

When BDO USA’s 880 partners met recently in Florida, they voted nearly unanimously to establish an employee stock ownership plan (ESOP). The plan is scheduled to go into effect on August 31, 2023 and will give the firm’s 10,000 employees a direct stake in ownership. The firm’s executives will continue to lead the company and…

Employee Benefits Security Administration
New Employee Ownership Initiative from the US Department of Labor
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Employee ownership is a powerful force for financial well-being and Employee Stock Ownership Plans (ESOPs) benefit both business owners and employees. The US Federal government recognized these factors in the 2023 national budget by including support for provisions dedicated to spurring ESOPs and Congress has introduced bi-partisan measures to advance employee ownership. The drumbeat of…

Menke Client Clark-Devon Hardware Highlighted in Chicago Sun Times
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A recent Chicago Sun Times article outlined how Menke client Clark-Devon Hardware, a well-established hardware store based in Chicago, has taken a significant step towards empowering its workforce and securing its future by implementing an Employee Stock Ownership Plan (ESOP). By transitioning to employee ownership, Clark-Devon Hardware aims to create a stronger sense of commitment…

New SBA Guidance Enhances Financing Opportunities for ESOPs
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Small businesses looking to transition to an employee-owned model through ESOPs can benefit greatly from two recent pieces of regulatory guidance from the Small Business Association (SBA) which bring positive changes to the financing landscape for ESOPs. These important pieces of guidance are Procedural Notice 5000-846607 and SOP 50 10, Version 7, both of which…

Employee Equity Investment Act: Another Boost for a New Decade of Employee Ownership
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In recent years, there has been a growing emphasis on promoting employee ownership in the United States. This focus has been championed by Congressional leaders and various states who recognize the numerous benefits that employee ownership can bring to businesses and their workforce. Earlier in 2023, the passage of the WORK and SECURE 2.0 Acts…

Menke Case Study: Kennon Products
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Protecting High Value Assets Protecting High Value Assets: this phrase expresses the mission for Kennon Products and the litmus test for decisions on investing the company’s resources. Located in the foothills of the Big Horn Mountains in Sheridan, Wyoming, the company’s ability to innovate and excellence in engineering led to its focus on protecting high…