ESOPs Boost Household Wealth
Workers between the ages of 18 and 34 who are employee-owners have 92% higher median household wealth relative to workers...
Tag: ESOPs
Opinions |
Pairing ESOPs With 401(k)s Can Heighten Retirement Outcomes
Trevor Bare, with Conrad Siegel, discusses the differences between ESOPs and 401(k) plans and how offering both can better prepare...
Court Says Participant Misunderstood Valuation for ESOP Purchase
A federal district court judge found that since shares for the ESOP were purchased with borrowed funds, the subsequent lower...
Court Orders Fiduciaries to Restore $6.5 Million to ESOP
The court found as a fiduciary to the ESOP, Evolve Bank failed to notice, question or investigate several red flags...
Court Issues Mixed Ruling in Case Over ESOP Stock Purchase
The court decision highlights the difficulty in determining the fiduciary status of parties and of making claims for equitable relief...
Study Finds Benefits of ESOPs for Employees and Employers
Among other things, workers with employee ownership experienced layoffs six times less often than those without, and employee turnover can...
Severance Agreement Bars Former Employee From Suing Over ESOP
A federal court judge cited a 5th U.S. Circuit Court of Appeals decision in Chaplin v. NationsCredit Corp. that concluded,...
Benefits |
ESOPs More Valuable Than Just a Retirement Savings Vehicle
Employee stock ownership plans (ESOPs) have been shown to provide a higher retirement savings balance than other plan types, and...
Prevention the Key to ESOPs Not Violating Nonallocation Year Rules
The IRS explains that the rules under IRC Section 409(p) are designed to prevent a group of “disqualified persons” from...
ESOPs As a Retirement, and Succession, Plan
ESOPs can help employees amass greater retirement benefits, as well as help business owners keep control in planning for the...
Stock-Drop Lawsuit Targeting IBM Revived and Remanded
An appellate court has taken the rare step of overturning a successful motion to dismiss a stock drop lawsuit targeting...
Workers in ESOPs Have Double the Retirement Savings
ESOP participants have an average retirement balance of $170,326, more than twice the $80,339 that other workers have saved
Companies With ESOPs Report Advantages for Business
In addition, 55% of responding companies contributed to their ESOPs an amount equivalent to 11% or more of participants’ pay—far...
Members of Congress Ask Trump to Protect ESOPs
In a letter, members of Congress accuse the DOL of “regulation through litigation” and ask that clear guidance regarding valuation...
Reliance Trust Settles DOL Lawsuit Over ESOP Valuation
The lawsuit alleged that employee stock ownership plan participants overpaid for company stock.
Divisions Remain in Courts Regarding the Burden of Proof
A case set to go to the U.S. Supreme Court for a decision about who bears the burden of proof...
Pro-ESOP Bill Signed Into Law
Among other things, the Main Street Employee Ownership Act focuses on increasing the role of the Small Business Administration (SBA)...
Plaintiffs’ Prudence Claims Snapped in General Cable Stock Drop Suit
In dismissing the stock drop challenge, the judge offers an illuminating review of what is required by ERISA’s duty of...
‘Prudence’ and ‘Loyalty’ Feature in Second Rejection of Wells Fargo Stock Drop Suit
While they won the day, defendants unsuccessfully argued that the Dudenhoeffer pleading standards should be applied not only to prudence claims, but...
Rainbow ESOP Lawsuit Easily Clears Early Motions
The text of the decision includes lengthy discussion of all 14 counts of ERISA fiduciary breaches, and why each is...