Adams and Reese Partner and Construction Team Co-Leader Trent Cotney had his article “How Your Company Could Benefit from Employee Stock Ownership” published in the March/April 2024 issue of Roofing magazine, a national news publication covering the roofing and construction industry.
“An ESOP is an intriguing employee benefit plan that allows employees to have ownership of part or all of the company that employs them. ESOPs are most commonly used to facilitate succession planning, enabling a company owner to sell shares and effectively transition from the business,” writes Cotney. “When owners of a construction company are ready to leave or retire, they may hesitate to sell to a competitor. In addition, in many cases, private equity companies may not be interested in investing in construction businesses. For these and other reasons, an ESOP can be a prudent choice.”
Cotney discusses that further advantages of an ESOP are tax status, employee morale, cash flow, and consistency.
“An ESOP can provide employees with a sense of ownership, which motivates them to perform at an even higher level and increases the company’s stock value. An ESOP can become an incentive for employee retention, encourage long-term growth, and perhaps even reduce interest in unions,” said Cotney. “When a company owner is ready to retire, there is often no continuity plan in place. However, with an ESOP, a company can maintain consistency through employee ownership.”
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Cotney is a leading member of one of the largest construction practices in the country with Adams and Reese’s roster of more than 80 attorneys serving the construction industry.
A Partner in the Adams and Reese Tampa office, Cotney represents construction and infrastructure clients, including general contractors, subcontractors, suppliers, manufacturers, architects, engineers, roofers, developers, and other professionals. He is an EU arbitrator for construction-related disputes. Cotney is also experienced in construction litigation and arbitration, including OSHA defense, lien law, bond law, bid protests, and construction document review and drafting.
Cotney is ranked among the top construction attorneys in Florida by Chambers USA and ranked by Best Lawyers, and Super Lawyers in Florida, Texas, Mid-South, and Illinois. Cotney is a board-certified construction lawyer licensed in eight states and Washington, DC.