In a recent court decision (Perez v. First Bankers Tr. Servs., Inc., No. 3:12-cv-04450 (D.N.J. March 17, 2017), a district court ordered First Bankers Trust (FBT) to pay almost $9.5 million to the plaintiffs for failing to adequately protect the interest of ESOP participants by allowing the ESOP to overpay for the shares from the owners of SJP Services. SJP provides site development for residential construction in New Jersey. The ESOP paid $16 million to buy the company's shares in 2007 (a price at the low end of the valuation range). The company subsequently saw a significant decline in stock price during the housing recession.
Read MoreA recent study published by the NCEO (www.nceo.org) based on data from the Department of Labor, indicates there were 6,717 ESOPs covering approximately 14.1 million participants at the end of 2014 (latest complete data set available.) These plans held assets in excess of $1.3 trillion, or roughly $92,000 per participant which is more than 125% of the average annual income.
Read MoreA class of employees from Constellis Group Inc. recently won a $29.8 million ERISA judgment, representing the difference between what employee stock ownership plan trustee let the ESOP pay for the private security firm and what a Virginia federal court ruled it was worth.
Read MoreSherwin Williams Co. wasn't engaged in a tax shelter when it pre-funded its employee stock purchase plan contributions in 2003 and 2004 to insulate employees from threats to the stock price, the California State Board of Equalization said ( In re The Sherwin Williams Co. , Cal. Board of Equalization, No 785285, hearing 2/22/17 ).
Read MoreSummit, NJ: Pilot Hill Advisors is pleased to announce its client, an international, privately-held commercial equipment manufacturer, recently completed a partial ESOP buyout.
Read MorePALO ALTO, Calif., Feb. 20, 2017 /PRNewswire/ -- Harrell Remodeling, Inc., a leading design and build remodeling firm headquartered in Palo Alto, CA has earned the accreditation of being named a "certified employee-owned" business by San Francisco-based Certified EO, announced Ciro Giammona, CEO of Harrell Remodeling.
Read MoreDennis Frampton spent nearly 50 years working at Meadville's C&J Industries, a custom plastic-injection molder and medical device contract manufacturer, founded in 1962.
Read MoreSummit, NJ: Pilot Hill Advisors is pleased to announce a New York City-based client has recently become 100% ESOP owned.
Read MoreTanimura & Antle has become the largest agricultural company in Monterey County to share ownership with its employees.
Read MoreBrismarck Tribune: Hebron Brick Company, an area clay brick and concrete block manufacturer, has converted to an employee stock ownership plan, a benefit plan which provides company stock as part of employees' retirement benefits, reports Jessica Holdman.
Read MoreHOLTS SUMMIT, Mo. — The sole shareholders of PFSbrands, Shawn and Julie Burcham, have concluded the sale of 100 percent of the company to its employees through an employee stock ownership plan (ESOP). PFSbrands is the parent company to the Champs Chicken and Cooper's Express brands.
Read MoreSARATOGA SPRINGS, N.Y. — Stewart's Shops is making a $10.5 million contribution to its Employee Stock Ownership Plan (ESOP), an increase of $500,000 over last year. This company contribution equals approximately 15 percent of a Stewart's employee's pay in 2016.
Read MoreA chance conversation on a ski hill led to a dramatic turn of events for Peter Saladino, the president and then-majority owner of a Seattle construction company.
Read MoreIn a recent Forbes article, consulting firm Point B's CEO Mike Pongon discusses his experience as a second generation leader of a 100% ESOP owned company. Darren Dahl, contributor to Forbes magazine, interviewed Mike to learn about how its ESOP has contributed to its business and talent. Point B became 100% ESOP-owned in 2014 after started the ESOP as a 20% owner in 2008…
Read MorePartially ESOP-owned Penta Engineering in Charlotte has been bought by a Syracuse, N.Y., firm that's expanding its reach into the Southeast.
Read MoreThe IRS issued rules requiring companies to file a new letter of determination every five years, based on a five-year reporting cycle determined by employer identification numbers. In Announcement 2015-19, the IRS said it would eliminate the fiver-year remedial amendment cycles effective after January 1, 2017. Because of the timing of the change, the IRS will continue accepting applications for Cycle A plan through January 31, 2017, which is the end of that cycle's submission period.
Read MoreIndustry sources report the IRS plans to stop issuing determination letters for periodic compliance. Under current procedures, companies sponsoring ESOPs and other plans file for determination letters in a five-year cycle. The current cycle process allows companies to receive IRS validation of plan changes.
Read MoreAdworkshop, an employee-owned digital marketing agency headquartered in Lake Placid with offices in Albany and Manhattan, took home a record nine ADDY Awards from the Albany Ad Club’s annual ADDY Awards held Friday, March 11, 2016 at the VanPatten Country Club in Clifton Park, including “Best in Show” for its Adirondack Regional Tourism Council Real Adirondack Stories video series. Click here for details.
Read MoreOnce again, Prellwitz Chilinski Associates, a Boston based design firm, is listed as one of the Top 25 Massachusetts Architecture Firms by the Boston Business Journal. Firms are ranked by 2014 Massachusetts architectural billings, putting PCA in the mix with many larger national and regional firms….another strong year for PCA.
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The ESOP Association today expressed strong opposition to an element of the Administration’s Fiscal Year 2017 recommended budget, which would eliminate an incentive for public companies that let workers own part of the business via an employee stock ownership plan (ESOP).
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