Vote YES: Encouraging Employee Ownership Act of 2017 (H.R. 1343)
By SBE Council at 3 April, 2017, 6:04 pm
UPDATE: On April 4, the U.S. House passed H.R. 1343 by a vote of 331-87.
A VOTE FOR ENTREPRENEURS & THEIR WORKFORCE
Vote YES: Encouraging Employee Ownership Act of 2017, H.R. 1343
Dear Member of the U.S. House of Representatives:
On behalf of the Small Business & Entrepreneurship Council (SBE Council) and our 100,000 members nationwide, I urge you to vote in favor of the “Encouraging Employee Ownership Act of 2017” (H.R. 1343).
America’s entrepreneurial firms drive the economy, and many small innovative firms use stock options as part of their compensation packages to attract and retain employees. The current threshold (under SEC Rule 701), where additional disclosure is required when firms sell more than $5 million in securities for employee compensation over a 12 month period, is a deterrent that prevents firms from offering stock options. Small businesses and their workforce both lose under this arbitrary threshold.
H.R. 1343 would raise the threshold to $10 million and index it every five years thereafter. This reasonable increase provides more flexibility and incentive for firms to leverage this win-win compensation tool, which helps them retain loyal employees and compete for the human capital they need to successfully scale.
Thank you, in advance, for considering America’s entrepreneurial sector and their workforce on this important vote. H.R. 1343 is a smart reform that will help our most promising firms grow more successfully, while providing their workforce with an opportunity to build wealth and financial security by owning a stake in these companies.
Karen Kerrigan, President & CEO