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RE: HOMESTEAD: Fwd: Update on chat w/ King of Sen. Corzine's office
Deb,
Noting
the reference in your copy letter to the Enron stock situation, here is one
summary report of the situation that has hit employees' 401K and other
arrangements. It is a scandal of corporate governance and underlines the
need for employees to have a defining say over what happens to their own money -
rather than allow company managements, or pension fund managers, to treat their
employees future income as if it were a corporate slush fund. It is the
best argument against employee stock ownership without employee participation in
its control that I can think of.
Vic
Dear
Homesteaders:
Attached
is a portion of the email I sent Gene Fisher of Congresswoman Carolyn
Cheeks-Kilpatrick's office regarding the Fair Exchange (SQPQ) proposals I have
been working on at his request. Based on my discussions with him and Senator
Levin's staff, I was asked to send the proposals to Senator Corzine who
drafted the Airline Bailout bill proposals on equity compensation for the
government. I would appreciate your thoughts on how to craft these proposals
to meet the needs of the policy makers as expressed by them. The actual
requested language I sent to Fisher and King are in my last posting to
Homestead addressed to David Ackerman of the ESOP Association Legislative and
Regulatory Committee.
Deb
Date: Wed, 05 Dec 2001 18:06:43 -0500
From:
Deborah Groban Olson <dgo@esoplaw.com>
Subject: Update on chat w/
King of Sen. Corzine's office
Dear
Gene:
Today
I spoke with Bruce King of Sen. Corzine’s office. He understands the idea
that global hegemony is moving from nation states to corporations and why
that is a problem for democracy. He is willing to look at proposals. He is
not interested in pushing stock ownership right now when the market is down.
He feels that now is a bad time to push ESOPs because so many people,
including employees, lost their shirts in Enron stock, etc. (I think he said
that employees were obliged to own stock at
Enron.)
He
also thinks that if the government gets reimbursed by corporations for
government investments, all taxpayers benefit. I think that is true on the
macro level. However, it is dependent on how the government, at any
particular time, allocates those funds. An equity stake to the government
doesn't do enough to build a second stream of income for citizens or give
them voting rights in the increasingly powerful corporations.
Now ,
when global companies are needy and coming to the US government to invest in
them, is an opportunity to get US citizens a needed financial stake in the
global economy. This investment stream of income will be increasingly
important in for all US citizens in the near future. Now that the Social
Security Fund is expected to be underfunded in 15 years and both
technology and globalization are decreasing the number of US jobs needed to
produce goods sold in the US, wage income, social security insurance or
individual development accounts will not be an adequate source of sustenance
for an increasing number of Americans. Perhaps the forum in which to join
this issue is not employee ownership, but instead social security,
unemployment or
trade.
Congress
should not miss out on this opportunity. During the next stock market
upturn, the companies will not need government help. During the following
downturn the process of corporate hegemony will likely have progressed.
Bruce
King is willing to look at more proposals, but he wants the draft proposal
to have more timely political resonance that does not smell of underwater
stock options, and devalued ESOP
stock.
Do
you have any reaction
to:
1) The
proposals I sent in the email to
King.
2)
These comments on King's
reaction.
3)
How to frame the issue to make it politically attractive?
Many
thanks for your time and interest.
Deb Olson
Deborah
Groban Olson
Attorney at Law
of counsel to
Jackier, Gould, Bean,
Upfal & Eizelman, P.C.
1021 Nottingham Road
Grosse Pointe Park,
MI
Phone:(313) 331-7821
Fax: (313) 331-2567
Email:
dgo@esoplaw.com
Web site: www.esoplaw.com for information on employee ownership,
equity compensation, and capital strategies, www.jackiergould.com
for information on general business law practice.
This message is intended for the sole use
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information that is privileged, confidential and/or exempt from disclosure
under applicable law. If the reader of this message is not the intended
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Attachment:
Enronpensions.doc
Description: MS-Word document
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