Elon Musk is asking a US court to dismiss an SEC lawsuit accusing him of saving $150 million by disclosing his Twitter stake late in 2022, in violation of rules requiring disclosure within 10 days of surpassing 5% ownership. His lawyers argue the case is baseless, saying he corrected the filing quickly, caused no harm to investors, and is being unfairly targeted due to his public criticism of the regulator. The SEC maintains Musk’s delay caused economic harm and is seeking unusually large monetary penalties compared to similar cases.

Employee Stock Ownership Plans (ESOPs) are experiencing a resurgence in 2025, moving beyond manufacturing into mainstream industries as regulators and lawmakers push for broader employee ownership and new financing options. ESOPs offer powerful tax advantages and succession planning benefits, but they come with costs, complexity, and long-term obligations, prompting some businesses to consider Employee Ownership Trusts (EOTs) as a simpler alternative focused on legacy and cultural continuity. For business owners, the choice between ESOPs, EOTs, or other succession strategies ultimately depends on priorities such as liquidity, tax efficiency, employee retention, and preserving company values.

The bipartisan SHARE Plan Act would give US companies with 500 or more employees a 3% corporate tax rate reduction if they grant stock at no cost to the lowest-paid 80% of their workforce, excluding top earners. Companies qualify by distributing at least 1% of their stock in a given year or 5% cumulatively, with stock grants subject to vesting but required to fully vest within five years and be freely transferable once vested. While the bill could significantly expand broad-based employee ownership, its success depends on whether the tax incentive outweighs the costs for companies, and its large potential budget impact may challenge passage.

A new bipartisan proposal, the SHARE Act, would give public companies a 3% corporate tax rate discount if they distribute at least 5% of their stock to the lowest-paid 80% of employees. Sponsors project the plan could transfer nearly $4 trillion in stock value to about 40 million middle-class Americans, helping narrow wealth inequality while boosting employee ownership and loyalty. Companies could offset share dilution through the tax break, and stock awards would be tax-deductible for businesses and tax-free for employees.

The One Big Beautiful Bill Act of 2025 (OBBBA) brings several tax changes that affect equity compensation, including raising the SALT deduction cap from $10,000 to $40,000 through 2029, though the benefit phases out for incomes above $500,000. It also alters Alternative Minimum Tax (AMT) rules beginning in 2026, making it more likely high earners exercising incentive stock options will trigger the AMT. Additionally, the law expands Qualified Small Business Stock (QSBS) benefits and shortens holding periods for capital gains exclusions, while adding new limits on charitable deductions starting in 2026.

An employee share scheme (ESS) gives employees actual shares in a company, providing immediate ownership rights such as dividends and voting power, while an employee stock ownership plan (ESOP) grants options—the right to purchase shares at a set price in the future. The key difference is that shares provide instant ownership and benefits, whereas options only become valuable if exercised when the market price exceeds the strike price. Both models are used by companies, including startups and listed firms, to attract and retain talent, but they differ in timing of benefits, tax treatment, and flexibility in participation.