Nearly every business has been affected in some fashion by the abrupt economic downturn, associated job losses, and capital markets volatility caused by COVID-19. ESOP-owned companies face even greater challenges given broad-based employee ownership requires the company to make an internal market for the company’s equity. For ESOP-owned companies that also offer certain employees synthetic equity plans, these challenges can be further magnified as equity-based capital claims consume an increasingly higher proportion of free cash flow. Other privately owned companies can put equity decisions on hold during periods of economic instability; however, ERISA-based retirement plans allow (by law) plan participants to put their shares to the plan sponsor company.
Chartwell is pleased to announce the promotions of several Chartwell team members across the country. Congratulations on a job well done!
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