Posted by Marc S. Schechter | Jun 23, 2026 |
As business owners look toward the future, many are asking the same question: What happens next?
Whether driven by retirement, succession planning, talent retention, or a desire to preserve a company's legacy, organizations across the country are increasingly exploring employee ownership as part of their long-term strategy.
Once considered a niche ownership model, employee ownership has become a growing topic of discussion among business leaders, policymakers, workforce development professionals, and advisors. Recent conversations surrounding artificial intelligence, workforce resilience, and economic participation have only accelerated interest in employee ownership structures.
For many companies, employee ownership is no longer simply a retirement plan concept. It is becoming a strategic business conversation.
More companies are exploring employee ownership because it can provide a succession planning solution, create employee engagement opportunities, support retirement security, and help preserve organizational culture and independence.
While employee ownership is not the right fit for every business, it is increasingly being considered alongside traditional sale, merger, and transition options.
Posted by Marc S. Schechter | May 28, 2026 |
California’s recent Executive Order addressing the impact of artificial intelligence on workers and businesses reflects a growing national conversation about how emerging technologies may reshape the workforce, organizational structures, and economic participation. Among the more notable aspects of the Executive Order is its recognition of employee ownership models as part of the broader discussion surrounding workforce resilience and economic transition in the AI era. For those of us working in the ERISA and employee benefits space, this reference is significant.
Posted by Marc S. Schechter | Jun 10, 2025 |
Recent legislative developments at both the federal and state levels underscore a growing commitment to promoting employee stock ownership plans (ESOPs) as a means to empower workers and foster inclusive economic growth. In May 2025, significant strides were made with the introduction of two federal bills aimed at enhancing ESOP structures, alongside California's proposed SB-713, which seeks to integrate ESOP considerations into state contracting processes.
Posted by Marc S. Schechter | Apr 01, 2025 |
Part 3: The Future of Employee Ownership in California
ESOPs as a Path to Shared Prosperity
As California shifts toward more equitable business models, employee ownership is emerging as a powerful tool for building wealth in local communities. With the right plan design and operational guidance...
Posted by Marc S. Schechter | Mar 25, 2025 |
Part 2: Designing Your ESOP: What Business Owners Need to Know
ESOP Plan Design: One Size Doesn’t Fit All
When it comes to setting up an ESOP, there’s no such thing as a cookie-cutter approach. Every company’s culture, financial situation, and long-term goals should shape the plan's design.
Posted by Marc S. Schechter | Mar 18, 2025 |
Part 1: Why California Is Poised for an ESOP Boom
Employee Ownership on the Rise: What’s Driving the Interest?
In recent years, employee stock ownership plans (ESOPs) have gained traction across the U.S. as an innovative solution for business succession planning — but in California, adoption has lagged behind other states. That may be about to change.
Posted by Marc S. Schechter | Aug 05, 2024 |
With the California Employee Ownership Act recently passed and pro-ESOP legislation in place, ESOPs are primed to pave the way for other western states to follow suit. Even the U.S. Department of Labor launched the Employee Ownership Initiative within its Employee Benefits Security Administration that will support the creation and expansion of worker-owned businesses.
Posted by Corey F. Schechter | Apr 03, 2023 |
Senate Bill (SB) 1407, the California Employee Ownership Act, was signed into law by Governor Gavin Newsom on September 29, 2022. The bill will be codified as Government Code Section 12100.30 to 12100.33.
Posted by Marc S. Schechter | Oct 25, 2022 |
October is Employee Ownership Month! Did you know that private and family business owners can use an Employee Stock Ownership Plan (ESOP) as a compelling alternative for selling their business at fair value while enabling it to remain independent? Want to learn more about ESOPs? Download our ESOP...
Posted by Marc S. Schechter | Oct 18, 2022 |
October is Employee Ownership Month! Did you know that there are 19 Employee Ownership State Centers (hubs) across the U.S.? Check out the interactive map on Employee Ownership Expansion Network (EOX) by clicking here.
Posted by Marc S. Schechter | Oct 11, 2022 |
October is Employee Ownership Month! Did you know that the largest majority employee-owned company is a grocery store? Publix Super Markets headquartered in Lakeland, Florida employs 230,000 workers. Its ESOP has been around since 1974. Click here to check out the other companies listed in NCEO's...
Posted by Marc S. Schechter | Oct 03, 2022 |
October is Employee Ownership Month! Did you know that SB-1407 California Employee Ownership Act was passed in both the state Senate and Assembly and was presented to Governor Newsom on September 9, 2022? SB-1407 was signed into law by Gov. Newsom on September 29, 2022. Click here to read more ab...
Posted by Marc S. Schechter | Sep 30, 2022 |
Governor Gavin Newsom signed SB-1407 California Employee Ownership Act on September 29, 2022...
Posted by Marc S. Schechter | Sep 26, 2022 |
Founding Partner, Marc Schechter, will be speaking on ESOP Legal and Regulatory Updates at The ESOP Association California & Western States (CAWS) 2022 Annual Conference on Thursday, September 29, 2022. This year's conference will be held at the Loews Coronado Bay - San Diego. Butterfield Schecht...
Posted by Marc S. Schechter | Jun 15, 2022 |
On February 18, 2022, SB-1407 California Employee Ownership Act was introduced by Senator Josh Becker to expand employee ownership of California businesses.
Posted by Marc S. Schechter | Mar 31, 2022 |
California is facing a Silver Tsunami of retiring business owners. There are many owners of small- to medium-sized businesses with no succession plan in place for when they retire. Business owners in California should consider an ESOP as an option to provide tax benefits and a ready buyer for their company when looking towards retirement. An ESOP allows owners and founders invested in the continued success of the company to maintain majority interest and control of the company to ensure the traditions of quality while rewarding employees who help build the company.
Posted by Marc S. Schechter | Feb 14, 2022 |
[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 6 of 6: Can ESOPs Benefit Disadvantaged Communities?
Employee share ownership has the unique benefit of distributing the success of the company among the employees who contributed to the company's growth. While employees generally benefit from ESOPs wherever the business is located, ESOPs in economically distressed communities could benefit the workers who live in those same communities...
Posted by Marc S. Schechter | Feb 07, 2022 |
[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 5 of 6: How can an ESOP help in my specific industry?
For certain industries, attracting and retaining workers is especially difficult in these times. The trucking, hospitality and grocery industries are no stranger to these perils. Learn more about how ESOPs can help in various industries.
Posted by Marc S. Schechter | Jan 31, 2022 |
[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 4 of 6: Why are ESOPs an effective tool in addressing high turnover?
An Employee Stock Ownership Plan (ESOP) provides a way to reward employees for their hard work by allowing them to share in the growth in value of the company. This gives employees an incentive to see the company thrive and continue to grow. With a long-term interest in the business, it also encourages employees to stay with the company, saving the company costs associated with high turnover rates.
Posted by Marc S. Schechter | Jan 24, 2022 |
[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 3 of 6: Is my company too small for an ESOP?
ESOPs are not for everyone, but here are some considerations if you are asking yourself, “Is my company too small for an ESOP?”
Posted by Marc S. Schechter | Jan 18, 2022 |
[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 2 of 6: What are the benefits of an ESOP?
One of the benefits of an ESOP is the understanding that employees who have an ownership interest in the company will be encouraged to do what is best for the company's financial interest. As shareholders in the company through participation in the ESOP, the employee has a financial incentive to see the company succeed...
Posted by Marc S. Schechter | Jan 12, 2022 |
On December 27, 2021, the National Defense Authorization Action (NDAA) for Fiscal Year 2022 was signed into law and made ESOP history. This is the first ever set aside program for federal government contractors who are 100% ESOP-owned to be eligible for noncompete follow-on contracts, subject to satisfactory performance. The pilot program is effective January 1, 2022, for a duration of five years.
Posted by Marc S. Schechter | Jan 10, 2022 |
[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 1 of 6: What is an ESOP?
An Employee Stock Ownership Plan (ESOP) is a qualified retirement plan that invests primarily in employer securities. ESOPs allow employees to share in ownership of their employer. Eligible employees are provided stock ownership as a benefit of working for the company. There are many benefits to providing an ESOP to employees...
Posted by Marc S. Schechter | Oct 18, 2021 |
Posted by Marc S. Schechter | Oct 13, 2021 |
Employee turnover is one of the most challenging issues facing many industries in the U.S. With so much spent on hiring, training, on-boarding, and getting workers up to speed, a short turnover period may cost the company more than the worker added. Many employers are struggling to address the issue, especially in times where the unemployment rate remains so low.
The trucking industry has been dealing with high turnover rates for years. Some trucking and transportation companies are learning from other employee-owned businesses and have seen results in transitioning the company to an employee-ownership model, including Employee Stock Ownership Plans (ESOPs). ESOPs often have much higher retention rates, in addition to the other benefits of giving workers a financial interest in their future with the company.
