ESOPs (BenefitsLink.com)Headlines re ESOPs, gathered by BenefitsLink.comESOP Terminations: A Report on the Reasons Companies Terminate Employee Stock Ownership Plans (PDF)- (Found June 29, 2008 ) 24 pages. Originally published April 17, 2007. Excerpt: "This report describes the results of the first phase of a research project on the reasons companies terminate employee stock ownership plans (ESOPs). It summarizes interviews with company leaders at former ESOP companies and suggests directions for the quantitative research planned for phase 2 of this project." (National Center for Employee Ownership)http://www.esopassociation.org/pdfs/Termination_Report.pdf Differing Treatment of Dividends in ESOP Stock Did Not Affect Status As Employer Securities- (Found June 29, 2008 ) Excerpt: "In a private letter ruling, the IRS has ruled that company securities held in an employee stock ownership plan (ESOP) were 'employer securities' despite differences in their treatment of special dividends." (Wolters Kluwer Financial Services)http://hr.cch.com/news/pension/022008a.asp Guidance Overview Supreme Court Expands Liability Exposure of Fiduciaries of Individual Account Plans (PDF)- (Found June 29, 2008 ) 3 pages. Excerpt: "In a unanimous decision, the U.S. Supreme Court has held that individual participants in defined contribution plans can sue to recover losses incurred by their individual plan accounts. The long anticipated decision in LaRue v. DeWolff, Boberg & Associates, Inc. will affect the rights and obligations of participants, sponsors, and fiduciaries of all defined contribution plans, including 401(k), profit-sharing, and employee stock ownership plans." (Morgan, Lewis..http://www.morganlewis.com/pubs/LEPG_LiabilityExposure_LF_25feb08.pdf Implications of the LaRue Decision for ESOPs- (Found June 29, 2008 ) NCEO Executive Director Corey Rosen discusses the implications for employee stock ownership plans (ESOPs) of the U.S. Supreme Court's decision in LaRue v. DeWolff, Boberg & Associates (No 06-856), which concerns a 401(k) participant. (National Center for Employee Ownership)http://www.nceo.org/library/larue.html Is There a Link Between ESOPs and Better Company Performance- (Found June 29, 2008 ) Excerpt: "A developing body of research suggests that exceptional business performance for ESOP firms is driven by a change from the traditional hierarchal business model." (Workforce Management; free registration required)http://www.workforce.com/section/02/feature/25/33/99/index.html How to Get Workers to Think and Act Like Owners- (Found June 29, 2008 ) Excerpt: "Just establishing an ESOP often isn't enough to get employees to think like owners. Companies that want to create an ownership culture need to make an explicit effort to teach employees about their stake and keep them focused on increasing stock value, says Corey Rosen, executive director of the National Center for Employee Ownership. To that end, they should give workers the freedom to take initiatives to cut costs and boost a company's bottom line. Companies should 'push...http://online.wsj.com/article/SB120205150679938689.html?mod=sblink_past_reports Bear Stearns' Ills Draw Company Stock 'Investigation'- (Found June 29, 2008 ) Excerpt: "The law firm of Stember Feinstein Doyle & Payne, LLC has announced it is investigating possible illegal conduct relating to the Bear Stearns Companies Inc. Employee Stock Ownership Plan, Profit Sharing Plan and Deferred Compensation Plan." (PLANSPONSOR.com; free registration required)http://www.plansponsor.com/pi_type10/?RECORD_ID=40678 Opinion Bear Stearns and Employee Ownership- (Found June 29, 2008 ) Excerpt: "The target page offers a look at the available facts about just what kinds of employee ownership plans exist there. For the broad employee population, there was an employee stock ownership plan (ESOP) that held about $285 million in Bear Stearns stock in 2007. The plan was funded by the company. This was not, however, the sole, or even main, retirement plan at the company. In addition, there was a profit sharing plan funded by the company that had about $300 million in...http://www.nceo.org/library/bear_stearns.html Employee-Ownership Plans Increasingly Common- (Found June 29, 2008 ) Excerpt: "A successful ESOP needs 'a lot of communication, some sense of history as an organization, and . . . some track record of success so employees are not frightened at the prospect' of owning their own company . . . ." (IBJ Media Corp.)http://www.ibj.com/html/detail_page.asp?content=12834 New edition of the book S Corporation ESOPs- (Found June 29, 2008 ) The NCEO presents excerpts from the new (third) edition of its book S Corporation ESOPs, a guide to the issues involved with having an employee stock ownership plan (ESOP) in a subchapter S corporation. The third edition features two new chapters, plus updates to other chapters. (National Center for Employee Ownership)http://www.nceo.org/pubs/s-corporation-esops.html |