The ESCA 2009 Annual Report reviews ESCA's 2009 legislative efforts and discusses how they employed a more aggressive strategy to speak out on behalf of S Corporation ESOP companies:

We recently discussed 2009 Required Minimum Distributions (RMDs) and how, as a result of the economic downturn, the requirement to take 2009 RMDs was waived. A participant that has already received a 2009 RMD has until the later of November 30, 2009 or 60 days after the date the distribution was received to roll it over. The waiver created many other administrative issues that need to be addressed, such as:

We recently discussed some Fiduciary Liability Insurance Considerations. Fiduciary Liabilities: Are You Covered? reiterates that your D&O Insurance and your ERISA Fidelity Bond will not indemnify you personally from benefit plan claims and discusses how, prior to Enron, the need for fiduciary liability coverage was not as urgent as it is today:

We recently discussed a Fourth Quarter Uptick in ESOP Transactions and how Section 1042 Sales to an ESOP will likely become more attractive with the upcoming Increase in Capital Gains Rates. Giving Employees a Share is a Wall Street Journal/Smart Money article that discusses ESOPs as a business transition alternative, especially given the large decline in IPOs and lack of private equity interest:

The November 16, 2009 Employee Ownership Update is online and discusses the following:

Last week the Wall Street Journal discussed how the expiring tax cuts combined with the proposed health care legislation will result in a 69% Capital Gains Tax Increase:

Creating Buyers: The ESOP as Exit Strategy discusses what we have been observing in the last quarter of 2009 – interest in ESOP transactions seems to be trending upward. A primary reason given is the fear that capital gains rates will likely be going up soon:

It's hard to believe this year's ESOP Association Las Vegas Conference is almost upon us. The two-day conference begins next Thursday and is jam-packed with informative ESOP sessions. I will be presenting ESOPs in Challenging Economic Times: Valuation & Communication Issues on Friday from 2 – 3:15:

In addition to Increasing Employee Wealth and Wages, a review of existing research on ESOPs found that ESOP companies have greater employment stability. Studies found that the average employee tenure was "significantly longer" than their non-ESOP counterparts and that firms were more likely to adjust wages than the number of employees.

The November 2, 2009 Employee Ownership Update is online and discusses the following:

Last week we discussed King Arthur Flour Company, a 100% ESOP-owned company. The Winning Workplaces Blog continues their coverage by discussing how People Practices Fueled Three Stages of Revenue Growth at King Arthur Flour. The three pivot points of their ownership culture, starting the ESOP, becoming 100% ESOP-owned, and developing a strong ownership cutlure, demonstrate the impact that an ESOP combined with a strong ownership culture can have on revenues and growth.