Simple concept, intricate analysis: the use of leverage ESOPs to provide savings plan matching contributions
Article Abstract:
Leveraged employee stock ownership plans (ESOPs) have been widely used to provide savings plans matching contributions. This method has been regarded as a way of putting company stocks in friendly hands so that management's interests will be protected in any takeover struggle. Since the decision to use leveraged ESOP affects company finances in the long-run, management must take cautious measures in the amount to be leveraged and the term of leveraging. For companies expecting even a moderate stock appreciation, future employee stability and continued regular tax paying status, the leveraged ESOPs make good management sense.
Publication Name: Benefits Quarterly
Subject: Human resources and labor relations
ISSN: 8756-1263
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Compensation - a simple concept made complex
Article Abstract:
Tax practitioners and plan sponsors must proceed with caution regarding compensation, due to its potentially conflicting list of definitions in the Internal Revenue Code's qualified plan provisions. There are at least five compensation definitions, despite the adaptation of Section 414(s) for uniformity. For instance, Section 414(s) has regulations that affect other definitions; 414(q)(7), 414(n) and 416 each define a different type of employee; 401(a)(17) and 404 have crucial limitations. It is thus recommended that Section 415 be amended to include salary reduction contributions.
Publication Name: Benefits Quarterly
Subject: Human resources and labor relations
ISSN: 8756-1263
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
The causal association between employee share ownership and attitudes: A study based on the long framework
Article Abstract:
The phenomenon of financial participation by employees is not a new one. New Zealand has fostered employee share ownership, and a quarter of the firms listed on the stock exchange ran employee share ownership schemes between 1976 and 1985. The causal link between share ownership and attitudes of New Zealand's managers is examined, based on Long's theoretical framework. Results show that previous attitudes did not have a causal effect on decisions to buy shares, and employee share ownership did not lead to improvement in attitudes.
Publication Name: British Journal of Industrial Relations
Subject: Human resources and labor relations
ISSN: 0007-1080
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Sponsors, participants impacted by corporate asset move to defined contribution
- Abstracts: Plugging the gap in training needs analysis. Where business schools fail to meet business needs. Auditing Managers' IR Training Needs
- Abstracts: Strengthening executive decision making. Leveraging diversity to improve business performance: Research findings and recommendations for organizations
- Abstracts: Government accused of 'sabotaging' new European Community pollution directive
- Abstracts: The importance of 'big ideas' to HR managers. Employees welcome 360-degree feedback