Employee Equity Investment Act Proposed

Bipartisan, bicameral legislation would support small business owners who pursue an employee-owned business model by simplifying ESOP rules. Nearly half of all private businesses are owned by individuals who are at or near retirement age, yet fewer than 15% of owners who are expected to retire over the next decade have a succession plan in place. Many will sell their businesses to buyers in the mergers and acquisitions (M&A) market or close their doors, resulting in the loss of jobs and businesses across the country. Another option is transferring ownership to employees, which would benefit both business owners and their workers. Interesting factoid: The great grandfather of Rep. Phillips, one of the bill’s sponsors, created one of the first employee profit-sharing plans in 1944. #IdeaoftheDay