|Mr. ROHRABACHER, Mr. Speaker,
employee ownership has always represented a lucrative opportunity
for companies, both large and small, and their employees. In the words
of Senator Russell Long, 'the wealth of our Nation should be more
widely held.' But as the Senator also pointed out, 'broadened ownership
will not be the result of a Robin Hood redistribution, but of enlightened,
foresighted management which knows that most deals are better if employees
share more fully the rewards.' Employee stock ownership plans (ESOP's)
in corporations and companies allow American employees opportunities
to be included in the operations of their business, while simultaneously
obtaining a stake in the company's success. As a result, employees
become more an integral part of their companies and can amass the
capital credit they need to form investments of their own.
|The number of ESOP's in the United States
is estimated to be approximately 12,000, involving over 12 million
employees. Since the 1970's, ESOP's have undergone dramatic growth
and expansion. The need for new information sources on ESOP's has
never been greater.
|A book with annual yearbook supplements,
'Employee Stock Ownership Plans: Business Planning, Implementation,
Law & Taxation,' authored by Robert W. Smiley, Jr., and Ronald
J. Gilbert, and published by Warren Gorham Lamont, offers the American
entrepreneur a comprehensive text describing the legal and practical
ramifications of implementation and employee ownership.
|Robert W. Smiley, Jr., is chairman of
the Benefit Capital Companies Inc., headquartered in Los Angeles,
CA, which he founded in 1984. Ronald J. Gilbert is the cofounder and
president of ESOP Services, Inc., headquartered in Scottsville, VA.
ESOP Services, Inc., also operates in central and eastern Europe and
Latin America. Prior to founding ESOP Services, Inc., he was a vice
president with Kelso & Co. in San Francisco. Their book, in short,
is a monumental work.
|Over 850 pages of text, supplemented annually
by over 500 pages in the updated yearbook, illustrate practical, rather
than theoretical, considerations. While the book is dedicated 'To
employees throughout the world'**' it is written to appeal to everyone
involved with ESOP's whether one seeks guidance as part of a management
team wrestling with one of the many complex issues that deal with
the feasibility of an ESOP or whether one is acting as legal or tax
counsel. It would also be helpful to Members of Congress that want
more information on the benefits of employee ownership.
|Smiley and Gilbert's book is more complete
than anything published before on the subject of ESOP'S. It combines
the best of both general and technical information. I urge members
of the business community and Members of Congress to study the ESOP
alternative. 'Employee Stock Ownership Plans' by Smiley and Gilbert
offers businessmen and Congressmen a great place to start studying.