Search
 

Borzi reminds owners of ESOP responsibilities

Since 2010, the Department of Labor has recovered more than $241 million for ESOP violations.

By Marlene Y. Satter | Updated on September 25, 2014

Lest business owners think they might not be held responsible for decisions made about stock valuations for employee stock ownership plans, no less a person than Phyllis Borzi, assistant secretary of labor for employee benefits security, blogged about it. She firmly fixed that responsibility on business owners to be sure that company stock purchased for ESOPs is valued properly.

With approximately 6,800 companies having an ESOP, Borzi said that while the ESOP’s advisor or valuation expert was responsible for valuing the stock correctly, business owners are not off the hook. And, she warned, their mistakes can be very expensive.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2024 ALM Global, LLC. All Rights Reserved.