The December 28, 2007 Employee Ownership Update is online and discusses the following:
- ESOP, Zell Take Over at Tribune
- New 409A Corrections Program Released
- Construction Industry Predicts More Employee Ownership
- Top 10 Employee Ownership Stories of 2007
Tribune ESOP
As discussed in Tribune ESOP is Born, the Tribune transaction has been finalized, with the ESOP owning 100% of Tribune’s shares and Sam Zell holding warrants convertible into a 40% stake. The Update discusses how the Tribune will be the fifth-largest majority employee-owned company. It also notes how the model of the Tribune transaction has yet to be replicated.
409A Corrections Program
The Update also discusses the 409A correction programs released under IRS Notice 2007-100 - Transition Relief and Guidance on Corrections of Certain Failures of a Nonqualified:
"The guidance is aimed at specified unintentional operational failures as well as failures for up to the limit on elective deferrals under Section 402(g) that are not corrected in the same taxable year (402(g) provides limits on non-taxable deferrals into qualified employee benefit plans). The relief is contingent upon the employer taking "commercially reasonable" steps to prevent recurrence of the problem. In addition, the notice asked for comments on potential expansion of the program to amounts too large for correction under current guidance."
Employee Ownership Trend and Top 10 Employee Ownership Stories of 2007
The Update also discusses the employee ownership trend construction industry and provides the Top 10 Employee Ownership Stories of 2007.
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