Congressman Mo Brooks, R-Alabama, announced he was co-sponsoring bipartisan legislation to encourage business owners to sell their shares to employee stock ownership plans. HR4141 was introduced to the House in June by Representatives Ron Kind, D-Wisconsin, and Jason Smith, R-Missouri.
“I am proud to co-sponsor the bipartisan HR 4141 project. This bill will take steps to encourage employee ownership in private companies,” Brooks said. “It encourages owners of S companies to sell their shares to an employee share ownership plan (ESOP) by making Sec. 1042 benefits offered to owners of S corporations, encourages the flow of bank capital to S corporations owned by ESOP, provides necessary technical assistance to businesses that may be interested in establishing an S corporation owned by employees (S ESOP), ensures that small businesses become ESOP companies maintain their Small Business Administration certification and affirm the importance of preserving the S ESOP structure in the IRS code. Employee share ownership has a proven track record in helping American workers build exceptional financial security and strong retirement savings and I’m happy to support it! ”
The bipartite Law on the Promotion and Expansion of Private Employee Ownership is designed to encourage the creation of employee-owned businesses through S Corporation Employee Share Ownership Plans (S-ESOP).
“I am proud to introduce this bipartisan legislation to empower Wisconsin workers and help more businesses become employee-owned,” Representative Kind said in a statement. “Starting our economy and creating jobs is a top priority as we strive to build back stronger after this pandemic, and it is clear that S-ESOPs are helping businesses grow faster while ensuring a more financially secure future for people. workers. ”
“This legislation builds on the success of ESOPs by giving employees a stake in the companies where they work,” said Representative Smith. “By making it easier for S companies to convert to an employee-owned model, we are encouraging entrepreneurs who are considering retirement to sell their business to employees rather than a competitor. This, in turn, gives employees greater economic security and helps them build their own nest egg.
Stephanie Silverman is President and CEO of S Corporations of America (ESCA).
“Employee ownership of private companies has a proven track record in helping American workers build exceptional financial security and strong retirement savings, as well as create well-paying jobs that resist economic uncertainty, ”Silverman said. “The ESOP community is grateful to Congressman Kind and Congressman Smith for introducing bipartisan legislation that not only recognizes the substantial benefits of employee ownership for workers and the economy, but goes further, by making these valuable benefits available to many more Americans. We encourage lawmakers to pass this legislation so that it can be enacted by President Biden, ”said Stephanie Silverman, President and CEO, Employee-Owned S Corporations of America (ESCA).
Mary Boettcher is Chief Financial Officer of Realityworks and Chair of the Board of Directors of the National Center for Employee Ownership (NCEO).
“The employees who own the businesses where they work have a share of the wealth they help create, and this connection makes businesses stronger, more stable and more rooted in their communities,” said Boettcher. “Employee owners have been shown to have greater family wealth and greater job security, and ESOP businesses have proven to be more resilient in an economic downturn. The legislation proposed by Rep. Kind will expand ownership opportunities like the ones we have in place at Realityworks to even more of the US workforce, and that’s good for the economy as a whole.
Timm Boettcher is the President and CEO of Realityworks.
“Realityworks employees not only have a job that creates a positive societal impact with competitive advantages, but they also receive a long-term retirement benefit for being part of an employee-owned business. Timm Boettcher added. “Being in the workforce today and planning for retirement is scary and downright difficult. Employees of ESOP companies get a huge boost in their long-term financial plans, just to do their day-to-day work and help make the company they work for strong and profitable. The proposed legislation is essential to the creation of more employee-owned businesses. I can’t think of anything more important that this country needs than to make sure people have safe and healthy retirement. This legislation simply provides for that at no cost. ”
Lisa Reardon is the CEO of OwnersEdge.
“OwnersEdge is proudly a 100% employee-owned company, and our experience has proven that when we deliver value to our employees through participation that helps them save for a secure retirement, they create exceptional value for our people. customers and help our business grow. and thrive, ”said CEO Reardon. “We strongly support efforts to promote the adoption of the S ESOP framework by private companies across our country and we are grateful for the bipartisan leadership from Congressman Kind and Congressman Smith who introduced this bill. aimed at empowering hardworking Americans through the benefits of employee ownership. ”
S-ESOP companies employ nearly 500,000 Americans in approximately 3,000 companies. According to several recent studies, S-ESOPs offer a number of benefits to businesses and workers, including a higher rate of growth than the company, increased retirement security and reduced income inequality within the company. the company.
HR 4141 was referred to the House Ways and Means Committee, and in addition to the Small Business, and Education and Labor Committees.
Brooks is currently serving his sixth term as representative of the 5th Congressional District of Alabama.
Brooks is a candidate for the US Senate. Outgoing Senator Richard Shelby, R-Alabama, is retiring at the end of his current term. Former Ambassador to Slovenia Lynda Blanchard, businesswoman Jessica Fair Taylor and former Business Council of Alabama CEO Katie Boyd Britt are also running for the Republican nomination for the Senate. Former Brighton mayor Brandaun Dean is running as Democrat.
The Republican primary will take place on May 24, 2022.