READING AND BALA CYNWYD, PA, April 17, 2019 – Six professionals from SES ESOP Strategies spoke at the National Center for Employee Ownership (NCEO) Employee Ownership Conference on April 9-11, 2019, in Pittsburgh, PA.
James G. Steiker, President and CEO, provided a “Legal and Regulatory Update” to attendees. This advanced session covered the past year’s developments in ESOP regulations and case law.
Edward C. Renenger, COO, presented “The Tax Efficiencies of Using the S-to-C-to-S Conversion for Your ESOP Transaction.” The session explored the strategy of revoking an S election to become a C Corporation prior to an ESOP transaction to enable the selling shareholder(s) to be eligible for the deferral of taxes utilizing section 1042, followed by the corporation revoking the C in the subsequent years to go back to an S election for the ESOP S Corporation benefits and corporate tax saving.
Mark B. Russell was a panelist for the session “Strategic Alternatives for Minority ESOPs.” The panelists reviewed different options available for minority-owned ESOPs contemplating a second-stage transaction.
In “Interaction Between the Trustee and the Valuation Firm,” Avery M. Chenin discussed the roles, responsibilities and interaction that occurs between the company, trustee and valuation firm throughout the course of the annual valuation, and the implications of the valuation on ESOP distributions, diversification and repurchase obligation.
Steven B. Greenapple presented “Building a Diversified ESOP-Owned Holding Company.” Attendees learned about the use of a diversified ESOP-owned holding company to successfully transition private companies to employee ownership, reduce risk and grow value.
During “Alternate Paths to Employee Ownership: LLCs, Perpetual Trusts, Worker Cooperatives and Direct Ownership,” Susan Halevi joined Loren Rodgers of NCEO in speaking about employee ownership options for companies whose legal structure or whose values about governance make an ESOP less practical.
In addition, Messrs. Russell and Greenapple headed a roundtable discussion, “Is an ESOP Right for my Company,” for attendees.