The House of Representatives approved legislation last Tuesday that would increase the amount of stock options that companies can distribute to their employees before reporting it to federal authorities.
The measure, the Encouraging Employee Ownership Act of 2017, means the U.S. Securities and Exchange Commission would double the stock compensation threshold for workers from $5 million to $10 million.
Rep. Barry Loudermilk, who serves communities from north Fulton, Cobb, Bartow and Cherokee counties in Georgia’s 11 District, said the measure gets rid of red tape holding companies back from rewarding employees with equity shares. “Sharing the profits of business with employees is a proven business model that benefits both the company and its employees. However, the government has made it increasingly difficult for businesses to offer stock to their employees, piling costly reporting requirements and bureaucratic red-tape upon these employers,” Loudermilk said in a statement.