DATE RELEASED: 05/16/19

Canfield & Tack and Cohber Press have announced their intentions to merge their Rochester, N.Y.-based printing companies effective June 1, offering clients commercial printing, collateral management, direct mail and digital marketing solutions. Employees of Cohber will become employee-owners at Canfield & Tack and all operations will be consolidated into Cohber's existing 84,000-sq.-ft. production facility located at 1000 John St. in Henrietta, N.Y.

Although financial details...

DATE RELEASED: 05/15/19

NEW YORK--(BUSINESS WIRE)

KeHE Distributors (KeHE) announced today that it has completed comprehensive review to find a strategic capital partner for growth, replacing a longtime minority shareholder. TowerBrook Capital Partners L.P. (TowerBrook), an international investment management firm, has become a shareholder in KeHE and has committed additional capital for future growth.

"We have been very deliberate in selecting a partner that believes in our mission and values as well...

DATE RELEASED: 05/07/19

DOL Enforcement Actions Fewer Since 2013 due to "Much" Better Industry Compliance

WASHINGTON, May 7, 2019 /PRNewswire/ -- The ESOP Association today welcomed Congressional testimony by U.S. Secretary of Labor Alexander Acosta acknowledging his "strong" support for Employee Stock Ownership Plans (ESOPs). Acosta also noted his view that ESOP companies have made real progress in legal compliance and that The Department of Labor (DOL) can do a better...

DATE RELEASED: 05/03/19

Government contractor Parsons ( PSN ) plans to raise $500 million in the week's second-largest offering. The company has solid growth, a large market opportunity, an outstanding governance structure. Parsons is owned by its more than 15,000 employees through an employee stock ownership plan; the ESOP actually took the company private in 1984. The last government contractor was a micro-cap in 2014 (Sysorex), and before that Booz Allen in 2010.

The week's other ESOP-owned IPO, Mayville...

DATE RELEASED: 04/30/19

PISCATAWAY, N.J.--(BUSINESS WIRE)--

Rutgers Institute for the Study of Employee Ownership and Profit Sharing Completes Three-Year Research Project Supported by the W.K. Kellogg Foundation

In the first-ever national study of low-income and moderate-income workers at employee-owned companies, researchers discovered employee stock ownership plans (ESOPs) enable families to significantly increase their assets, shrinking—though not eliminating—gender and racial wealth gaps. The...

DATE RELEASED: 04/28/19

Matt Wienke started his professional-services consulting company Infoverity from scratch, building it into a company with clients around the world.

Now he has handed ownership of the company over to his employees.

Wienke and Dublin-based Infoverity have formed what's called an Employee Stock Ownership Plan, or ESOP, in which a trust holds the shares of the company and distributes them to employees over time.

For Wienke, 48, the...

DATE RELEASED: 04/25/19

Stewart's Shops Partners have received their profit sharing statements. Existing ESOP accounts received approximately 13% growth on their existing accounts including over 6% in dividends.

This success is from the service our great Partners provide, increased operating profitability, and the changes in the Federal corporate tax law.

The company has made a $17 million company contribution to the Employee Stock Ownership Plan, an increase...

DATE RELEASED: 04/24/19

By Pension and Benefits Editorial Staff

ESOP fiduciaries did not breach their duty to prudently manage plan assets by failing to attempt to persuade officers of the plan sponsor from making affirmative misrepresentations that they knew, based on inside information,...

DATE RELEASED: 04/17/19

Employee stock ownership plans ("ESOPs") are a special breed of qualified retirement plans. Whereas a traditional profit sharing or 401(k) plan is typically invested in mutual funds, an ESOP is designed to invest primarily in stock of the sponsoring employer. This means that an ESOP can deliver powerful incentives to employees who are motivated to work to better their own retirement funds. In recognition of these benefits, policy makers and academics have long touted ESOPs and other forms of...

DATE RELEASED: 04/12/19

WASHINGTON, April 12, 2019 /PRNewswire/ -- The ESOP Association applauds Representatives Ron Kind (D-WI-3) and Jason Smith (R-MO-8), who earlier this week introduced pro-Employee Stock Ownership Plan (ESOP) bill H.R. 2258. The measure, which seeks to encourage the formation of ESOPs, is the House companion to S. 177, which was introduced in the Senate earlier this year by Sen. Pat Roberts (R-KS).

"ESOPs are a powerful way to connect employee owners to the business and to enable them to...

DATE RELEASED: 04/11/19

A new bill was introduced in California on February 22, 2019, by Senator Scott Wilk (R). The bill, SB-553, would provide an incentive for some California businesses to adopt employee stock ownership plans, better known as ESOPs. Two major problems facing the United States today are the vast number of Americans with little to no retirement savings and the many owners of small- to medium-sized businesses with no succession plan in place for when they retire. The widespread adoption of an ESOP...

DATE RELEASED: 04/09/19

Like every state in the U.S., Massachusetts is worried about what will happen when the baby boomer owners of thousands of small to midsize businesses reach retirement age, in what is being called the "silver tsunami." Fewer and fewer small business owner now expect to pass their enterprise onto their children and many older entrepreneurs, concerned about the possibility of having to shutter their businesses and lose their years of investment, have turned to selling to large conglomerates or...

DATE RELEASED: 04/03/19

The IRS has published an Issue Snapshot discussing methods for preventing an Internal Revenue Code (IRC) Section 409(p) violation for S corporation employee stock ownership plans (ESOPs).

The IRS explains that the rules under IRC Section 409(p) are designed to prevent a group of "disqualified persons" (DPs) from collectively owning 50% or more of an S corporation's stock (i.e., the definition of a "nonallocation year"). Since there are no prescribed correction methods to address...

DATE RELEASED: 04/02/19

We're both planning to attend the annual conference of the National Center for Employee Ownership in Pittsburgh next week. The prospect got us thinking about employee stock ownership plans, or ESOPs, which are even now one of the most misunderstood and underutilized devices in an entrepreneur's toolkit.

Let's review the bidding. At some point you will want to retire from the company you founded. If you don't have a son or daughter ready to take over, you will probably want to sell the...

DATE RELEASED: 04/01/19

The owners of Bowers + Kubota Consulting, Inc. sought to dispose of their interest in their company by forming an ESOP. They appointed attorney, Saakvitne as trustee of the ESOP and obtained a valuation of the company before negotiating the sale of their shares to the ESOP. The Department of Labor sued the owners, company, and trustee for breaches of fiduciary duty and prohibited transactions in Hawaii federal district court. The DOL alleged that the appraisal of company shares used to fund...

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