Employee Stock Ownership Plans (ESOPs) Archives - Page 5 of 14

Unique ESOP Structure Considerations

by Allison Wilkerson | May 22, 2018 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Retirement Plans

ESOP transactions continue to grow in sophistication as sellers, plan sponsors and fiduciaries seek to meet certain goals and regulatory requirements. Allison Wilkerson, and other panelists for this presentation, reviewed a number of advanced transaction structures that are being utilized more and more to address specific needs identified by one or more of the parties involved in the arrangement. Such structures include the use of warrants in a financing structure, implementation of clawback and/or earn out requirements, use of incentive plans for successive management, and provisions that may be impactful with respect to future transaction or planning.

This presentation provides information to those companies/sellers/ESOP fiduciaries who are pursuing an ESOP transaction with alternatives that may provide an opportunity to better address the goals and objectives of the shareholders, ESOP, Company, employees and other stakeholders.

View full presentation.

Navigating the Challenges of Cross-Border M&A Transactions

by Anthony A. Bongiorno and McDermott Will & Emery | May 8, 2018 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Employment, Executive Compensation, Health and Welfare Plans, Retirement Plans

Last month, Alexander Lee and Maureen O’Brien joined with Rob Wellner from Velocity Global to discuss the tax and employee benefits complications that arise in cross-border transactions. Key points discussed:

Complex tax structures must be considered and understood
Transfers of employment may be governed by different statutes in each affected jurisdiction
Purchasers may not be ready to provide employment, payroll and benefits on the closing date without significant pre-closing work

View full presentation.

Compensation for Privately Held Companies

by Allison Wilkerson | May 3, 2018 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Executive Compensation

Allison Wilkerson presented on a panel at the National Center for Employee Ownership (NCEO) Conference. The panel provided an overview of issues impacting compensation matters, as well as decisions affecting privately held companies that are wholly or partially owned by an ESOP. The presentation included an analysis of certain legal requirements and a current view on best practices. Finally, the panelists provided real-life examples of effective compensation programs and decision-making strategies for executive and staff compensation.

Access full presentation.

Webinar | Benefits Litigation – An Ounce of Prevention

by J. Christian Nemeth | Apr 25, 2018 | Benefit Controversies, Employee Benefits, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Health and Welfare Plans, Retirement Plans

Join us for a webinar on Friday, May 4 as McDermott litigation attorney Chris Nemeth joins employee benefit attorney Judith Wethall to discuss what’s new in employee benefits litigation. Chris will give you a peek into a world you hope never to go! Learn about disturbing trends, traps and how to prevent your employee benefit plans from being targeted.

Friday, May 4, 2018
10:00 – 10:45 am PDT
11:00 – 11:45 am MDT
12:00 – 12:45 pm CDT
1:00 – 1:45 pm EDT

Register now.

ESOP Litigation Trends: Department of Labor Voids Fiduciary Indemnification Agreements to Reach Settlements

by McDermott Will & Emery, Allison Wilkerson, J. Christian Nemeth and McDermott Will & Emery | Apr 12, 2018 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues

The US Department of Labor has taken the position that certain indemnification clauses are void against public policy under Section 410 of ERISA. This policy has been adopted by private plaintiff classes; as evident from a recent settlement, a policy that voids indemnity provisions can limit defense budgets, make settlements more likely and potentially create dangerous precedent for ESOPs.

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No Stone Unturned: Locating Missing Participants under the PBGC’s Expanded Program for Terminated Plans

by Brian Tiemann, Maggie McTigue and Sarah L. Engle | Apr 5, 2018 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Retirement Plans

The PBGC’s missing participants program, which previously applied only to single-employer defined benefit pension plans, has been expanded to defined contribution plans, multiemployer defined benefit plans and small professional service defined benefit plans that end on or after January 1, 2018. The revised program provides a helpful alternative for plan administrators of terminating defined contribution plans, and also includes welcome clarifications that enhance the program available to defined benefit pension plans.

Access the full article.

A Matter of Trusts: Tenth Circuit to Decide Important ESOP Case

by Calli Turner and J. Christian Nemeth | Mar 8, 2018 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Retirement Plans

The ESOP industry is paying close attention to a Tenth Circuit appeal that will address the deferral of corporate deductions for certain accrued expenses payable to ESOP-participating employees. This appeal, which pertains to an underlying tax court opinion, Petersen v. Commissioner of Internal Revenue (decided June 13, 2017), is critically important to certain ESOP-owned S corporations for tax planning and other purposes.

Internal Revenue Code (IRC) Section 267(a)(2) defers deductions for expenses paid by a taxpayer to a “related person” until the payments are includible in the related person’s gross income. IRC Section 267(c) sets out constructive ownership rules for purposes of determining if certain persons are “related persons.” Section 267(c) provides that stock owned, directly or indirectly, by a trust shall be considered as being owned proportionately by its shareholders. In Peterson v. Commissioner, the US Tax Court addressed whether an ESOP trust is a “trust” for purposes of IRC Section 267(c).

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The Budget Act Makes Some Surprising Changes to Benefit Plans

by Jacob Mattinson, McDermott Will & Emery and Sarah L. Engle | Mar 6, 2018 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Retirement Plans

On February 9, 2018, President Trump signed a bipartisan budget deal into law, effectively extending federal funding through March 23, 2018. The act includes multiple provisions affecting employee benefit plans, including relaxed hardship withdrawal rules and relief for individuals affected by the California wildfires.

Benefits Emerging Leaders Working Group

by Jacob Mattinson | Mar 1, 2018 | Benefit Controversies, Employee Benefits, Employee Stock Ownership Plans (ESOPs), Employment, Executive Compensation, Fiduciary and Investment Issues, Health and Welfare Plans, Labor, Privacy and Data Security, Retirement Plans

McDermott’s Benefits Emerging Leaders Working Group provides benefit professionals with tools to better serve employees in an ever-changing and evolving benefits landscape.

Presentations will tackle the latest benefits hot topics and best practice solutions, supplemented with important networking opportunities aimed to connect tomorrow’s benefit leaders with a broad network of professionals.

Planned agenda topics include:

What’s Happening in Washington?
Lessons from an RFP
Lunch Discussion: Changing Behavior through Benefits Communication
Global Benefit Plans
Moderated Group Discussion (including Voluntary Benefits)

Register Now.

Fridays with Benefits Webinar: Bipartisan Budget Act Breakdown

by Anthony A. Bongiorno and Sarah L. Engle | Feb 21, 2018 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Health and Welfare Plans, Retirement Plans

The Bipartisan Budget Act helped avoid another government shutdown, but did it cause problems for your benefit plans? Sarah L. Engle and D. Finn Pressly will discuss everything you need to know about the new legislation, including changes to hardship distributions and new wildfire relief. The panel will also bring you up to speed on other key developments in the employee benefits sphere over the last month.

Register now.

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