Secretary of Labor, Thomas E. Perez, Mentions ESOPs in Remarks

On October 20, Secretary Perez spoke at the National Press Club in Washington, DC, the topic: Shared Prosperity: Building an Economy that Works for Everyone. While the majority of the speech focused on private-sector job growth, shared prosperity, and B Corps, near the end of remarks he noted:

“Employee Stock Ownership Plans are another example of business leadership. In 2012, there were roughly 6,800 such plans, with nearly 14 million total participants and assets just over $1 trillion. When used as they were intended, ESOPs can contribute to the growth of a company while helping employees save for retirement.

The challenge moving forward for B Corps and ESOPs is to take these successful models to further scale.”

The Secretary’s full remarks can be found here.

ESOP Association President, J. Michael Keeling said, “I was pleased to read these remarks. As you know, the ESOP community has many concerns regarding a proposed regulation by the DOL regarding the definition of a fiduciary. We have been working with individuals at the DOL and we’re hopeful that this statement represents a change for the good.”