State Advocacy

Governor’s Proclamation:

Governor Eric J Holcomb has has issued a Governor’s Proclamation recognizing October 2024 as Employee Ownership Month! Click here for a copy of the proclamation. Please feel free to download this Proclamation for use during your ESOPs Employee Ownership Month celebrations!

Indianapolis Mayor Proclamation:

Mayor Joe Hogsett has issued a Mayoral Proclamation declaring the month of October 2024 as Employee Ownership Month. Click here for a copy of the proclamation. Please feel free to download this proclamation for use during your ESOPs Employee Ownership Month celebrations!

Support for Employee Ownership:

Respondents in the 2019 study overwhelmingly voiced their preference for employee-owned companies. When asked to choose between a company owned by employees, a company owned by investors and a company owned by the state, the results were as follows:

Political party: 72% of republicans, 74% of democrats, and 67% of independents chose the company owned by employees
Ideological views: 69% of conservative, 72% of liberal, and 73% of moderate respondents opted for employee ownership
Vote in 2016 election: 77% of Trump voters and of 76% Clinton voters preferred the employee-owned company

Republican Party:

There is no mention of employee ownership in the 2024 national platform. The last mention of employee ownership was in the 2016, Republican National party platform supports employee ownership:

Republicans believe that the employer-employee relationship of the future will be built upon employee empowerment and workplace flexibility. We therefore endorse employee stock ownership plans that enable workers to become capitalists, expand the realm of private property, and energize a free enterprise economy.

At the state level there is no mention of employee ownership.

Democratic Party:

There is no mention of employee ownership in the 2024 national platform. However, in a policy statement issued Sept 25: Vice President Harris and Governor Walz will reform our tax laws to make it easier for businesses to let workers share in their company’s success, including through broad-based employee stock ownership, profit-sharing plans, and comparable arrangements, with appropriate guardrails to ensure these plans benefit and protect workers.

At the state level, the Indiana Democratic party platform does not contain information supporting employee ownership.

Project Equity (2023), has identified that members of Indiana’s boomer generation own 51,996 business which employ 675,000 Hoosiers, with a combined payroll of 25 Billion dollars. It is estimated that 80% of these business do not have a succession plan when their owner retires. Some of these business may transition to family members, some may be sold to out-of-state owners who might close and move the business, some may be sold to private equity firms interested in a quick flip with no regard to the employees left in the wake. However there is a better solution – transition of ownership to the firms employees through establishment of an Employee Stock Ownership Plan.

Research has shown that Employee-Ownership is good for our citizens, our state, and our economy. Many states have passed pro-ESOP legislation and as Indiana citizens we need to focus on state level legislation that will support and encourage transition of these boomer businesses to their employees.

Click here to view state based pro-ESOP legislative activity, prior to Jan 3, 2025.

Current activity as of Jan 21 2025 is below:

Indiana – Senate Bill 175, authored by Sen Shelli Yoder, Establishes the employee-owned business resource center (center). Sets out the duties of the center, including establishing and administering a revolving loan program. Establishes the employee ownership revolving loan fund. Makes conforming changes.
Indiana – House Bill 1038, authored by Rep Jake Teshka, Requires the treasurer of state (treasurer) to establish and administer a program to assist Indiana companies in obtaining financing from a financial institution for the purchase of company shares by an employee stock ownership plan (ESOP). Allows the treasurer and a financial institution to enter into an agreement under which: (1) the treasurer places a certificate of deposit (CD) with the financial institution at not more than 3% below the comparable Treasury Bill rate; and (2) the financial institution makes a loan to a company at a reduced percentage rate of interest that corresponds to the CD’s reduced rate of interest. Status: This bill was discussed in the House Committee on Financial Institutions Jan 21. INCEO attended the committee meeting and testified in support of this bill. HB 1038 was passed by the committee and referred to the Committee on Ways and Means.