Chicago partner Theodore Becker contributed a chapter to a book published by the National Center for Employee Ownership (NCEO), entitled “Don’t Do That: Common Mistakes in Operating an ESOP and What to Do About Them.” Ted co-authored chapter 8, “Valuation Vexations,” which includes several “don’t do’s” for ESOP fiduciaries.
For many years, the NCEO staff would hear stories about ESOPs that made them wince. People experienced problems, sometimes serious ones, that good and timely advice would have prevented. As these stories mounted, it seemed to the NCEO that it could save people from headaches if it published a book about some of the common (and a few not-so-common) mistakes that ESOP companies make and how to avoid them. In 2010, the NCEO engaged leading ESOP experts from all fields to contribute to the book and the NCEO staff added quite a few stories of their own. The company name is usually disguised, but the scenarios and solutions are real.
For the second edition in 2015, NCEO members and staff contributed a number of new cases, and a few minor updates were made. The NCEO says, “There is a good chance you will recognize your own company in at least a few of these dilemmas. If not, the book will give you greater confidence that you really aren't missing something. Either way, you'll sleep better at night.”
Print and digital editions of the 147-page publication are available through the NCEO website. For information on how to obtain the book, as well as a content outline and excerpt, click here.