Podcast: Discussing and Demystifying the IRS News Release on ESOPs
(A)ESOP's Fables - The Income and Estate Tax-Free ESOP
Investment Management Update – Exit Strategies
ESOPs: A Path to Bank Independence
Happy Spring from the Kaufman & Canoles ESOPs, Benefits & Compensation team! We hope you’re shaking off the winter blues and ready for another round of benefits updates. ...more
On March 19, 2025, the German Federal Labor Court (Bundesarbeitsgericht or BAG) held in Case No.: 10 AZR 67/24 that certain forfeiture clauses in General Terms and Conditions of Business (Allgemeine Geschäftsbedingungen or...more
Virtual Stock Option Plans (VSOPs) are a common tool used by companies to incentivize employees by linking part of their compensation to the company’s long-term success. Unlike traditional stock options, VSOPs do not grant...more
At least four lawsuits have recently been filed against employee stock ownership plan (ESOP) fiduciaries alleging a failure to prudently invest cash held in the ESOP trust. While scrutiny of investments in company stock has...more
Key Takeaways: Board’s Duty to Monitor the Trustee: A company’s board of directors has a fiduciary duty to monitor the ESOP trustee’s actions in an ESOP transaction, ensuring that the trustee is acting in the exclusive...more
On January 20, 2025, an executive order froze two new pieces of proposed employee stock ownership plan (ESOP) guidance announced in a notice of proposed rulemaking and originally set for publication in the Federal Register on...more
On February 6, 2025, a Pennsylvania federal judge gave preliminary approval to a $2.1 million settlement resolving a class action involving the Pride Mobility ESOP. This case is one of six brought so far—and the second to...more
There is a significant demographic shift headed our way known as the “gray tsunami,” as a very large portion of the American population will reach retirement age and eventually exit the workforce. In fact, we are at a peak...more
A February 19 Executive Order, titled “Ensuring Lawful Governance and Implementing the President’s ‘Department of Government Efficiency’ Deregulatory Initiative,” is aimed at directing the “Administration to focus the...more
The U.S. Department of Labor (DOL) on Jan. 16, 2025, released its long-awaited proposed regulation interpreting the definition of "adequate consideration" as applied to private company stock acquired or sold by an employee...more
As a new administration takes office, CHBs should prepare for significant policy changes across immigration, employee benefits, and employment and labor law that could impact their businesses in 2025....more
Employment-related policies are undergoing rapid change, with regulatory shifts impacting the enforceability of non-competes, evolving unionization dynamics, and a growing focus on employee stock ownership plans (ESOPs)....more
On January 16, 2025, the US Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) released two pieces of guidance that, if finalized, would dramatically change the landscape for fiduciaries responsible...more
On January 16, the Department of Labor released long-awaited guidance on how to determine the value of employer stock in purchase and sale transactions involving an ESOP. Unfortunately for those in the ESOP community hoping...more
On January 16, 2025, the Employee Benefits Security Administration (EBSA) at the Department of Labor (DOL) released drafts of long-awaited proposed regulations seeking to clarify the definition of “adequate consideration” as...more
The Internal Revenue Service (IRS) regularly requires retirement plans to incorporate new laws and regulations. To ensure that pre-approved retirement plans incorporate these required legal and regulatory updates, the IRS...more
Good news! The second chamber (Bundesrat) has now paved the way for the eagerly awaited and much-debated inclusion of a group privilege in sec. 19a of the German Income Tax Act (“EStG”). German start-ups that have done the...more
As we approach the end of 2024, companies that existed prior to January 1, 2024, should already have on their radar the Corporate Transparency Act (“CTA”) beneficial ownership (“BOI”) reporting requirements or determine...more
The following checklist highlights key issues for corporate counsel with respect to employee benefit plans and executive compensation arrangements....more
As 2024 winds down, many are wondering what 2025 may bring in the world of compensation and benefits. Our ERISA attorneys use their decades of experience and crystal balls to predict what may be on horizon in plan design and...more
The Internal Revenue Service released the cost-of-living adjusted qualified retirement plan and welfare plan limitations effective January 1, 2025. For ease of reference and comparison to prior years, we have placed the...more
The IRS has announced inflation-adjusted limits for retirement plans in Notice 2024-80. The 2025 retirement plan limits are summarized here....more
In a recent court ruling, the US Department of Labor (DOL) prevailed against corporate directors and shareholders for claims related to an Employee Stock Ownership Plan (ESOP) transaction. ...more
Much has been written about the unsatisfactory tax situation of German employees when it comes to equity-based employee stock (option) programs ("ESOP"). Historically, employees were taxed at the time of issuance of shares...more
On October 10, 2024, the U.S. Department of Defense (DOD) issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to establish a pilot program allowing for sole source follow-on contract...more