logo-loader
viewOTC Markets Group Inc.

OTC Markets Group cheers bipartisan introduction of the ESOP Fairness Act in Congress

Employee Stock Ownership plans allow employees to take an ownership stake in their companies, but current regulations exclude companies that trade on OTC Markets

Members of the 115th congress and their families mingle on the house floor
If passed, the ESOP Fairness Act would allow US companies and community banks traded on the OTCQX Best Market, to share in these benefits

OTC Markets Group Inc (OTCQX:OTCM) is congratulating lawmakers for introducing bipartisan legislation on Tuesday that would help qualified public companies trading on an over-the-counter market to offer Employee Stock Ownership Plans (ESOPs).

The ESOP Fairness Act (S.3270) (H.R.5851) was put forth simultaneously by Senators Thom Tillis (R-NC) and Gary Peters (D-MI) and Representatives Mike Kelly (R-PA-16) and Brian Higgins (D-NY-26) in the House.

READ: Proactive teams up with OTC Markets Group to film executive interviews from OTC’s New York headquarters

ESOPs provide a means for employees to take an ownership stake in their companies, which helps business grow by adding value to corporate equity and improving employee retention.

Current IRS regulations, though, make it difficult for companies that don’t trade on national securities exchanges (NYSE and Nasdaq) to offer ESOPs to their employees.

If passed, the ESOP Fairness Act would allow hundreds of US companies and community banks, such as those traded on the OTCQX Best Market, to share in these benefits.

OTC Markets Group has long supported ESOP reform for small companies on the OTCQX market and is pleased to see a bipartisan group of legislators taking up the issue.

"We thank Senators Tillis and Peters, and Representatives Kelly and Higgins, for introducing theESOP Fairness Act,” OTC Markets Group General Counsel Dan Zinn said in a press release.

“Their thoughtful legislation stands to make ESOPs more effective for hundreds of smaller companies and community banks, to benefit their many thousands of employees across the country."

For Peters, a member of the Senate Commerce, Science and Transportation Committee, ESOPs are an important economic issue for companies in Michigan and across the country.

“Providing small businesses additional pathways to retain and recruit talent is critical to supporting the companies that help drive our state’s economy,” Peters said as part of a joint statement. “The ESOP Fairness Act would allow more small businesses across Michigan to easily offer ESOP plans to their employees, allowing them to expand corporate equity, aid employee retention and create jobs.”

"ESOP reform remains an important area where legislators can affect positive change to improve public markets for small US companies and make employee equity ownership more inclusive,” Zinn said. “Modernizing existing ESOP law to include an updated definition of an 'established securities market' will allow companies traded on the OTCQX Market to further invest in their long-term growth."

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

Quick facts: OTC Markets Group Inc.

Price: 34.5 USD

OTCMKTS:OTCM
Market: OTCQX
Market Cap: $401.99 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of OTC Markets Group Inc. named herein, including the promotion by the Company of OTC Markets Group Inc. in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Proactive teams up with OTC Markets Group to film executive...

OTC Markets Group Inc. (OTCQX:OTCM) EVP of Corporate Services Jason Paltrowitz spoke with Proactive's Christine Corrado to explain how the OTC Markets Group is forming an alliance with Proactive to film executive interviews from the OTC Markets’ New York headquarters, in its newly-built...

1 week, 2 days ago

2 min read