ESOPs Gain Strength with Congressional Visits
Posted 4-13-2010 | By Sarah Gengenbach (Niklaus) | Download Article
The implementation of an Employee Stock Ownership Plan (ESOP) can create a positive impact with noticeable benefits company-wide. Employees become owners, a stronger culture develops with increased communication, and the company receives tax advantages. However, who is protecting the ESOP structure in Washington, D.C.? Does your Member of Congress know about your company’s ESOP? Do they know the importance of the ESOP to your business, employees and community?
With so many tax reform proposals and discussions taking place in Washington, D.C., now may be a great time to consider a Congressional visit to your ESOP company. Getting to know Members of Congress may help give your company and the ESOP structure a voice in Washington D.C. now and in the future.
There are many benefits to inviting a Member of Congress to your company headquarters:
- With tax reform looming, now may be more important than ever to help your Member of Congress understand the ESOP structure, and to illustrate the importance of the structure to you, your company, your employees and the community.
- Provides a first-hand look at the company, the company’s ESOP story, individual stories and the excitement and passion for employee ownership.
- Gives the Member of Congress an idea of how important employee-owned companies are to their district and state.
- Builds a relationship with an advocate for you and other ESOPs in Washington, D.C. This gives the Member of Congress a story to tell when issues or discussions surrounding employee ownership/ESOPs develop.
- It’s important to do your part to protect the S-Corp ESOP.
- The future of the ESOP is always a work in progress. The more you can educate Members of Congress and communicate the benefits, the more advocates you’ll create to protect the structure.
Considerations:
- Remember ESOPs are not a partisan issue; it should not matter whether the Member of Congress is Democratic or Republican, what matters is providing them with knowledge to understand and to protect the ESOP.
- Team up with other ESOP companies in your area to invite a Member of Congress. The more people the Member of Congress can be exposed to, the more valuable the visit may be to them.
- Don’t get discouraged if you need to invite them more than once without a response. They have busy schedules when they return from Washington, D.C., however they do make time for company visits. The best time to propose a visit is during their recess in April, May, June or August.
- If a company visit is not right for your business, consider scheduling an in-district meeting or visiting the Member of Congress on Capitol Hill in Washington, D.C.
- If you are a member of the Minnesota/Dakotas Chapter of the ESOP Association or a member of ESCA (Employee-owned S Corporations of America), these organizations may help you send the invite and coordinate the visit.
For more information, including steps to scheduling a visit, please contact Sarah Niklaus, CPA, ESOP Industry Leader, at sniklaus@hlbtr.com.