ESOP Knowledge Can Provide Real Adviser Differentiation

When it comes to retirement and business succession planning, survey data shows clearly that small business owners have given relatively little thought to how they’ll shift into retirement or enact an exit strategy. According to Jerry Ripperger, vice president of consulting at Principal, more than 70% of business owners in the U.S. do not have

Joy Cone reaches a milestone that’s been a century in the baking

Here’s the scoop: Joy Cone Co. is celebrating its 100th anniversary. And in recent years the company has been on a delicious ride of expansions. What started out as a small local operation is now the world’s largest ice cream cone company. Producing more than 1.5 billion cones a year, it has operations in Hermitage,

Using ESOPs to Grow Your Business and Build a Dedicated Workforce – Part 2

Unlike other methods of raising capital, because an ESOP is also an employee retirement plan, the ESOP can also serve as a powerful engine for attracting and maintaining a competent and committed workforce. These goals are wholly complementary and achievement of the latter may well serve to insure the success of the former.  Here are

Using ESOPs to Grow Your Business and Build a Dedicated Workforce – Part 1

The “grow or die” business ethos may have been discredited, but sometimes growth is essential to maintain market share or fend off challenges from competitors. A business growth strategy can take many forms, such as expanding capacity or a strategic acquisition, but the common element is the need for capital. A great strategy will come

It’s Time for President Trump to Seize the Ownership Solution

Because Trump Administration officials’ conflicts of interest have dominated the recent headlines, it’s time for the President to heed the Wall Street Journal’s pre-inauguration advice to liquidate his business holdings to avoid being “accused of a pecuniary motive any time he takes a policy position." The paper’s editorial board asserted that “one reason 60 million

To attract top talent, USA Mortgage turns ownership over to its workers

USA Mortgage's owner is offering an employee stock ownership plan with the aim of helping it staff up as it expands outside its home market. Full-time staff members now can receive shares in USA Mortgage's owner, DAS Acquisition Co., if they complete 160 hours of service and meet other qualifying criteria. Employees are fully vested

APPVION employees set to lose part of retirement funds

Employees at Appleton paper company APPVION are learning about the fallout from the company's bankruptcy filing. Earlier this month, APPVION agreed to a deal with a group of lenders to purchase its assets after it filed for Chapter 11 bankruptcy protection last year. The moves doesn't just mean people will lose their jobs, some are

What can be done for the suffering working class in the US?

The low income working class is one of the largest groups in America.  You can spot its members working at Wal-Mart or McDonalds, in large or small factories, in clerical jobs, and toiling in agricultural areas.  This group includes single individuals, unmarried cohabitors, married childless couples, and families.  The common denominator is that they are

Why ESOPs are a complete failure in India

While Silicon Valley companies like Facebook and Google have created thousands of millionaires through stock option programs, the same financial instruments are producing misery in India. Despite a surge in the number of startups, few workers have benefited from options. Many companies don’t pay out to employees because they struggle financially; just as often, founders

Appvion workers learn their employee stock is likely worthless

Appvion’s public announcement last week of its proposed sale left out a significant detail. The paper company has an Employee Stock Ownership Plan (ESOP), which means the company is owned by its employees. If the proposed $325 million bid by an unnamed lender is successful, the ESOP will have no value and employees will lose the shares they expected

Starbucks gives workers raises, stock grants due to tax law

Starbucks is giving its U.S. workers pay raises and stock grants this year, citing recent changes to the tax law. All employees will soon be able to earn paid sick time off, and the company’s parental leave benefits will include all non-birth parents. Starbucks Corp. said Wednesday that the changes affect about 150,000 full-time, part-time,

243 of Clif Bar’s employees in Twin Falls now have stock in the company

When Isaac Norstad got his statement in May, he was surprised — to say the least. He’s had part ownership in Clif Bar since a year after he started with the company. But now, he was fully vested and able to get a glimpse of what that ownership was worth. The value on his ownership

Wawa Settles Employee Stock Ownership Lawsuit

Wawa Inc. has agreed to pay $25 million to settle a class-action lawsuit filed in February 2016 in the U.S. District Court for the Eastern District of Pennsylvania that claimed the convenience-store retailer violated the Employee Retirement Income Security Act (ERISA) by allegedly barring workers who left the company from maintaining company stock and liquidating their stock at

Tax Reform Bill Could Impact ESOP Deductions

The Tax Cuts and Job Act does not change legislation for Employee Stock Ownership Plans (ESOPs) but it could have some indirect effects with regards to their taxes, according to an Employee Ownership Update written by Loren Rogers, executive director of the National Center for Employee Ownership. The tax bill limits net interest deductions for

How to use PSB ESOPs to improve profitability

Employee Stock Option Plan (ESOP) is an employee compensation strategy wherein eligible employees are awarded equity shares at a pre-determined rate, generally lesser than the market value of such shares. ESOP is not an alien term anymore. In fact, it has gained significant recognition and acceptance worldwide. In India, too, ESOP has evolved as an

2017-09-24T16:03:26-05:00Tags: , |

Econofoods in process of purchasing Jubilee Foods

Changes are in store for two of the Twin Towns Area’s supermarkets. Econofoods, Wahpeton, has entered into an agreement to purchase Jubilee Foods, Breckenridge, Minnesota. The purchase is expected to be complete before the end of the year, said Barry Bowar, vice president of operations for Lueken’s Food Stores Inc. and store director for Econofoods.

2017-08-21T05:36:57-05:00Tags: , |

Mom’s kitchen table talks shaped a mission to make money while doing good

Some criticize business people for being in it for just the money. But many are in it for the money and a chance to do some good. Like Chris Wolz. Wolz, 56, and his two business partners, classmates at Harvard’s Kennedy School of Government, built their company, Forum One, into a thriving enterprise that tries

2017-05-23T08:07:20-05:00Tags: |

ESOPs in India – Benefits, Tips, Taxation & Calculator

You must have heard stories of crorepati employees of Infosys or some other big organisation – I am talking about 10 years back when salaries were comparatively low. Most of the Indian’s still don’t understand the power of equities but those employees knowingly or unknowingly get benefitted from ESOPs. Last week I was working with one

2017-04-16T07:37:50-05:00Tags: , |

Tax advantages of ESOPs as an exit opportunity for architecture and engineering firms

Stakeholders in mature architecture and engineering firms nearing retirement are bombarded with ideas from many advisors for the “best” exit option. Despite the owners’ desire to continue to run their firms as they always have and simply focus on their clients, they need to contemplate several key considerations of a solid and successful exit plan,

2017-03-15T11:03:36-05:00Tags: |