Business & Finance Associate, Chris Wingard authored this article in The Legal Intelligencer on the legislative bills positioned to reduce the uncertainty in ESOP valuation standards. Traditionally, ERISA’s vague “adequate consideration” standards have discouraged business owners from adopting ESOPs due to the inconsistencies and litigation risks. The article describes the new legislative developments, including the Retire Through Ownership Act, that aim to address DOL representation, retirement limits, capital access, agency transparency and litigation reform. The passing of the Retire Through Ownership Act, along with the additional bills suggests growing bipartisan support for employee ownership. The article concludes by advising the ESOP community to continue to advocate for these bills and monitor for developments.
To read the full article, click here.
