New MGA White Paper Examines Consequences of Regulatory Uncertainty for Employee Ownership
In a new white paper, “Regulatory Uncertainty: General Economic Principles and the Case of Employee Stock Ownership Plans,” MGA CEO Alex Brill details the consequences of regulatory uncertainty for businesses and provides a close look at the ongoing uncertainty facing companies owned by employee stock ownership plans (ESOPs).
As Brill explains, an ESOP is a type of employee benefit plan that allows a company’s employees to gain an economic ownership interest in their company without using their own money. A lack of formal regulatory guidance from the Department of Labor (DOL) has created burdens and risks that can discourage employee ownership and hamper ESOP-owned businesses.
In a recent op-ed, former US Congressmen Ron Kind (D-WI) and Erik Paulsen (R-MN) cite the MGA white paper as they call for DOL to establish clear and workable ESOP rules.
Brill was also interviewed about the white paper by Paul Mulholland for PLANADVISER. Brill said “I think the regulatory uncertainty around ESOP valuation is a significant impediment for the industry, the most pressing concern right now.”
The full white paper is available here.