Hartford, CT, July 10, 2019 --(PR.com
)-- Connecticut Governor, Ned Lamont, has signed a bill permitting an Employee Stock Ownership Plan (also known as an ESOP) to own up to 100% of the equity of architectural firms. The old law, in place for many years, required at least 2/3 of the ownership of an architectural firm to be held by licensed architects whether or not the stock of the firm was owned by an Employee Stock Ownership Plan.
The old law has been superseded with respect to ESOP ownership said Richard Glassman, a founding partner of ESOP Plus®: Schatz Brown Glassman LLP
, an ESOP law firm with a national practice and an office in West Hartford, CT.
Glassman says that the cumbersome and expensive need to create a separate management company is no longer required for Connecticut architectural firms that wish to sponsor an ESOP with ESOP ownership in excess of 33% of the firm.
Glassman was the only ESOP practitioner invited to testify about the change before both the Connecticut Legislature and the Connecticut Architectural Licensing Board.
“I was pleased to be able to support this important change in front of the both the state legislature and the Connecticut Architectural Licensing Board,” said Glassman. “It’s a large step for ESOPs and that will strengthen the competitive position of Connecticut architectural firms and their employee owners in the increasingly national market for high quality professional expertise.”