Employee Ownership

//Employee Ownership

The ESOP: When your people are your company

Ex nihilo, out of nothing. When you began your business, it may have been an idea you brought to life with your own ingenuity and hard work. But now, if your company has grown at all, it also bears the image of other creators. Key employees have contributed ideas, talent, a history of hard work

ESOPs Fables

We all know how unprepared Americans are as a whole are for retirement. Just google “retirement crisis.” The statistics are ugly. There are too many reasons to list as reasons why many Americans do not have enough money saved for retirement. Stagnant wages coupled with rising life expectancies, healthcare costs, tuition costs, and housing costs all surely contribute.

How customers benefit from partnering with employee-owned businesses

Each October, the spirit of employee ownership is highlighted during Employee Ownership Month, an ideal time to boost awareness for employee stock ownership plans (ESOPs) and their benefit to companies, employees and communities at large. Leading the charge in Employee Ownership Month is The ESOP Association, which believes employee-ownership improves American competitiveness, increases productivity in the

Crafton embraces ESOP to preserve company’s culture, legacy

Matt Crafton’s entire life has been shaped by the company his father co-founded 56 years ago. Now, he’s put forth a plan that will help shape the lives of the people who work for it. On Sept. 3, Crafton Tull, a multistate engineering and design firm headquartered in Rogers, Arkansas, announced the formation of an

Quiz: Is an Employee Stock Ownership Plan Right for My Business?

Employee Stock Ownership Plans, or ESOPs, are a terrific type of employee benefit plan.  They are also a way for a small business owner to cash out and exit the business — and save on taxes.  The quiz below will help answer the question “is an Employee Stock Ownership Plan right for my business?” About

Benching your VC: The employee buyout playbook

Grow or sell? It’s the ultimate dilemma for startups. This dilemma can become even more acute when you’re the CEO of a VC-funded startup. You want to develop your product, while driving sales and marketing, so that the business can reach its full potential, but your VC’s fund has reached maturity and they want you to sell

NewAge Industries announces 100% employee ownership

At a company-wide meeting held on 5 September, it became official: NewAge Industries is now entirely owned by its employees through its ESOP (Employee Stock Ownership Plan). The event was the culmination of a plan first considered by CEO Ken Baker more than two decades ago. “I’ve had a lot of other business owners ask

Forcing companies to share the wealth with employees could save capitalism

Americans are working hard, but employers aren’t necessarily working for them. Now a radical idea to guarantee U.S. workers a cut of their company’s profits could one day force employers to cough up more of the wealth. While established profit-sharing and equity-ownership programs already give a financial boost to many American workers, and enjoy bipartisan

Top 10 Ideas That Show Business Roundtable CEOs How To Create Value For All Stakeholders

We are in the process of putting into practice a new social contract between business and society. The most recent evidence is the Business Roundtable’s August announcement that 181 CEOs of America’s largest companies were committed “to lead for the benefit of all stakeholders.” As I wrote with my fellow co-founders of the B Corp movement: “While it

6 Ways CEOs Can Prove They Care About More Than Shareholder Value

Somewhere, Milton Friedman must be spinning. Whatever they thought they were doing, the 181 CEOs who signed the Business Roundtable’s breakthrough statement on the purpose of corporations embraced a much wider interpretation of corporate responsibility—signalling the beginning of the end for the shareholder primacy cult. The pressure on business leaders to declare and deliver against a wider social

Election 2020 and Taxes — A Better Way To Address Wealth Inequality

The drums sound as to income and wealth inequality as an issue for the 2020 Democratic Presidential primaries.  The loudest voices calling for increasing taxes on owners, investors and entrepreneurs – with a view that raising taxes on high-end income families is a good in of itself. All this jawing on hiking taxes on owners/investors/entrepreneurs

Ownership of Yankee Publishing to Transfer to Employees

Yankee Publishing Inc., a family-owned business for 84 years, announced the sale of 30% of its shares to the company’s employees through an Employee Stock Ownership Plan or ESOP. The company, with 85 employees based in offices in Dublin and Manchester, New Hampshire, publishes Yankee, The Old Farmer’s Almanac, New Hampshire Magazine, Family Tree Magazine,

‘A pathway to the American dream’

Bolstered by a vision of employee ownership, OwnersEdge Inc. is in growth mode. The City of Pewaukee-based holding company is headed by Lisa Reardon, who has expanded the business to include others in the field of niche technological solutions and expertise. All are structured as employee stock ownership plan companies, or ESOP companies. Reardon worked

More stocks for all Americans may be a better wealth redistribution method

Democratic Party leaders have made Wall Street “greed” and corporate financial engineering, such as stock buybacks, a priority of efforts to reduce wealth inequality. Policy recommendations to tax stock market gains and target private equity are popular, but one idea that many high-profile Democratic hopefuls have supported in the past has not received much attention

Fighting Capitalism With Capitalism

As a human-resources professional, Jennifer Briggs got used to firing people. She’d refer to it as “layoffs,” “right-sizing,” or whatever euphemism her employer wanted her to use at the time. She was a foster child turned single mother who had relied on food banks to feed her kids, and, as unpleasant as it was, managing

Who’s the boss? In worker-owned cooperatives, everyone is.

The chain of command at PV Squared, a solar panel installation company in Massachusetts’s Pioneer Valley, is admittedly convoluted.  “Technically, I’m Kim’s boss,” says general manager Jonathan Gregory of bookkeeper Kim Pinkham. But “Kim’s on the board, and the board oversees my position, so technically she’s my boss.” As members of a worker-owned cooperative, the

Summers Trucking employees meet new owners: themselves

Summers Trucking employees gathered for breakfast Saturday morning at the Ephrata American Legion. After ham and eggs and all the fixings, the 91 employees learned that the Summers family owners, Becky, John and Ken, had transferred their shares in the business to an employee stock ownership plan (ESOP). With that move, the Summers management triad

The workers have become the owners at this Bangor construction company

As Scott Dunbar and Alan Brawn eyed retirement in recent years, they had to make some serious decisions about the Bangor construction company they started 16 years ago. They could sell Dunbar and Brawn Construction to a competitor. They could simply close the doors of their headquarters on Hildreth Street and sell off the property.

Young employees want stock plan benefits

Workplace flexibility and financial security like student debt repayment programs are some of the benefits Generation Z and millennials value the most — but employers who want to impress millennial workers should also consider equity compensation. Younger employees view stock plan benefits differently than older generations. More than half of employees under age 35 (57%)