West Hartford, CT, April 10, 2019 --(PR.com
)-- ESOP Plus®: Schatz Brown Glassman LLP partner Rich Glassman, of West Hartford, Connecticut, testified before the General Law Committee of the Connecticut Legislature in favor of a statutory amendment to permit an Employee Stock Ownership Plan (ESOP) to own up to 100% of the voting stock of architectural firms licensed in Connecticut.
At the legislative committee’s request, Glassman also petitioned the Department of Consumer Protection’s Architectural Licensing Board. At its March 19, 2019 meeting, the licensing board voted unanimously to support the legislative change.
Glassman said, “There is little consistency among states regarding licensed professionals’ ownership of a professional services company. Connecticut currently requires that at least two-thirds of the voting shares of a corporation offering architectural services be owned by licensed architects. The change we are proposing would allow an employee stock ownership plan to own up to 100% of the shares of a Connecticut architectural firm for the benefit of all of its employees.”
Glassman noted that the change allowing expanded ESOP ownership would not expand ownership by unlicensed individuals and would not change current statutory protections that require all individuals providing architectural services, as well as the chief executive officer of an architectural corporation, to be licensed architects. He also noted that broad-based employee ownership culture contributes significantly to the quality of a firm’s product or service as well as to the financial health of the business and its employees.
With the support of the Architectural Licensing Board, Glassman is optimistic that the Connecticut Legislature will enact the proposed legislation. He said that the change would encourage the creation of architectural ESOPs in Connecticut, enhancing employees’ retirement savings as they participate in the growth and success of their companies.
Glassman also testified in front of the Commerce Committee of the Connecticut State Legislature in support of legislation creating an employee ownership center within the Connecticut Department of Economic Development.
Glassman said, “I hope that this legislation will encourage the creation of Employee Stock Ownership Plans throughout Connecticut to benefit the Connecticut economy, the Connecticut business environment and, most importantly, the employees that work at these ESOP owned companies.”
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