Spring 2018

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Stay current on employee ownership issues and activities with EO Insights, our quarterly online publication.

A Look Back on the Way Out

I know there is a strong biblical probability that I’ll turn into a pillar of salt for it, but I can’t help looking back over the last dozen years with the Beyster Institute at UCSD as I stumble away.  I have to say, I am very proud of the numerous innovations in graduate business studies our Institute has been able to integrate into the Rady School of Management over that time…continue

Forbes Books Radio Interview with Martin Staubus

Martin Staubus, executive director of the Beyster Institute recently was interviewed by Forbes Books Radio… Martin Staubus interview - 10/19/18

Mitchell Miller

Seeking Clarity with ESOP Liability in the Top Five Most Litigated ESOP Issues

On October 1, 2018, The ESOP Association wrote a letter to President Trump over concern the Department of Labor’s practice of “regulation through litigation” is harming companies sponsoring employee stock ownership plans.  The letter cites the DOL’s lack of guidance on key issues, such as valuation as a primary source of concern, and requests the DOL cooperate with the ESOP community to establish clear guidelines…continue

Main Street Employee Ownership Act: You Take the Good with the Bad

The Main Street Employee Ownership Act legislation is widely considered a significant victory for the employee ownership community.  It provides a significant overhaul to the existing Small Business Administration lending policies in regard to leveraged ESOP transactions.  Banks had the ability to provide ESOP financing under the SBA program…continue

Mauro Canelo

The Strange Case of the “Double Hit” on the ESOP Company Balance Sheet

Current accounting practices for leveraged employee stock ownership plan transactions can sometimes be confusing and misleading.  The main objective of this short article is to provide a basic understanding of how generally accepted accounting principles work for ESOPs and discuss the impact on stakeholders (i.e. shareholders, employees, creditors, and potential buyers)…continue

Case Study: How Does Cashless Exercise Work?

Nowadays, employee stock options have become a prevalent tactic of companies to compensate their employees.  If employees have a considerable amount of wealth locked to company stock options, it is important to optimize an execution strategy to maximize their profit and account value.  Thus, evaluating all methods for exercising stock options is essential…continue

Tips for Sharing Bad News

Business life doesn’t always go as planned and leaders should be prepared to share bad news. In perfect bad news situations, if there is such a thing, a company has already been practicing open book management and has built a community of resilient corporate citizens ready for information and action…continue

Leandro Canelo

Advice for Startup Founders: Plan Ahead

For any startup aiming to thrive and succeed, it is extremely important to define a compensation study from the beginning. Based on our experience advising clients, we can confidently say that building a compensation strategy can be complicated when a company is small and all the attention is on the organizations’ main mission…continue

Opinion: Employee Ownership and the Promise of Quality Jobs – Alison Lingane

In October, the official United States unemployment rate dropped to 3.7 percent, which represents a 49-year low.  And yet, according to a recent Harris Poll, nearly 80 percent of American workers report living paycheck-to-paycheck, with little in the way of savings to handle any financial emergency…Times of San Diego opinion article - Nov. 12, 2018