The ESOP Association celebrates a new law that will help businesses better understand and pursue options for becoming employee owned. The law—the Main Street Employee Ownership Act—seeks to make better use of existing programs offered by the Small Business Administration (SBA) to companies considering an employee owned model, such as an Employee Stock Ownership Plan (ESOP).
“This law will help organizations better understand how to pursue a strategy of shared capitalism—something that our country’s founders agreed was vital to the health of our nation,” said ESOP Association President J. Michael Keeling. “As businesses become more aware of employee ownership’s advantages—which include higher corporate performance, a share in the rewards for employees, and a retirement plan that often outperforms other alternatives—it is easy to see employee ownership increasing, just as Alexander Hamilton, Thomas Jefferson, and George Washington hoped it would.”
The ESOP Association believes all employees deserve a chance to benefit from employee ownership, which has long been linked to higher sales growth per worker, higher sales per worker, and greater likelihood to survive than conventionally-owned firms, according to a study by Daniel Weltmann and Professors Joseph Blasi and Douglas Kruse.
“This new law shows, once again, that employee ownership enjoys support that is bipartisan and bicameral. Enabling employees to share in the profits they help generate is just good business and good economic policy,” added Keeling.
The ESOP Association thanks those whose efforts made this accomplishment possible, especially: Rep. Nydia Velazquez (D-NY), ranking member of the House Small Business Committee; Committee Chair Rep. Steve Chabot (R-OH), who provided early and important support for the measure; Sen. Kirsten Gillibrand (D-NY), who worked with Rep. Velazquez and introduced the bill in the Senate; and Sen. James Risch (R-ID), chair of the Senate Committee on Small Business & Entrepreneurship, who was instrumental in getting the measure added to H.R. 5515. That bill, which authorizes defense spending for 2019, was signed into law today by President Trump.
About the ESOP Association
The ESOP Association is America’s largest employer-sponsored advocacy and education association focused on employee stock ownership plans. Founded in 1978, the Association seeks to enhance federal laws governing ESOPs, provide members with expert information, and fund research via the Employee Ownership Foundation (an affiliate).
The ESOP Association is a national non-profit organization with 18 local Chapters. Its members include ESOP companies, companies considering an ESOP, and service providers that assist in setting up and maintaining ESOPs.