Trump Administration Places DOL’s ESOP Proposals in Regulatory Moratorium

On January 16, 2025, the US Department of Labor’s (DOL) Employee Benefits Security Administration released two proposed regulations related to employee stock ownership plans (ESOPs). One regulation aims to clarify the valuation process for non-publicly traded employer stock, while the other would provide a safe harbor for transactions involving newly established ESOPs.

However, on January 20, 2025, the Trump administration froze all pending proposals, including the DOL’s ESOP regulations. If finalized, these regulations would dramatically change the landscape for fiduciaries responsible for valuing stock in privately held corporations during transactions with ESOPs.

Read more here.

Ted Becker
Ted Becker is co-head of McDermott’s ERISA Litigation practice and a Fellow of the American College of Employee Benefits Counsel. He focuses his practice on litigation under ERISA and related federal and state actions, and defense of government investigations and audits relating to employee benefit, health and welfare, and retirement plans brought by the US Department of Labor, the Internal Revenue Service, and the US Department of Justice. He is a leading voice and nationally recognized practitioner in this complex practice area. Read Ted Becker's full bio.


Allison Wilkerson
Allison Wilkerson focuses her practice on employee benefits matters. She has extensive experience handling issues pertaining to the Employee Retirement Income Security Act of 1974 (ERISA) and employee stock ownership plans (ESOPs). Read Allison Wilkerson's full bio.


Erin Turley
Erin Turley focuses her practice on employee benefits matters. She has extensive experience handling issues pertaining to the Employee Retirement Income Security Act of 1974 (ERISA) and employee stock ownership plans (ESOPs). Erin’s tenure as chief executive officer of a privately held company owned by an ESOP provides her unique insights into the legal and practical implications and requirements of ESOP-owned companies. Read Erin Turley's full bio.


Myriem Bennani
Myriem Bennani focuses her practice on employee benefits and executive compensation matters. She has extensive experience representing employers and plan sponsors in matters related to qualified and nonqualified employee benefit plans, with a particular emphasis on employee stock ownership plans (ESOPs) and executive compensation issues. Read Myriem Bennani's full bio.

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