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

Make Your ESOP Work for YOU

Congratulations. You’ve completed your paperwork, met the Department of Labor criteria and successfully established your employee stock ownership plan (it took a while, didn’t it?). You’re now half the way there. In order to perform better and reap the clear benefits an ESOP can generate, you must couple employee ownership with employee engagement. It starts with

ESOPs rising: Employee ownership gaining traction

When people think of employee-owned businesses, large companies such as grocery chain WinCo — with scores of locations across the western U.S. — spring to mind, said Poncho Baker, the new CEO of Ritchie Trucking in Fresno. But for owners who want to see their business and life’s work continue, and for workers looking for

ESOPs More Valuable Than Just a Retirement Savings Vehicle

Studies have shown that companies that sponsor employee stock ownership plans (ESOPs) see positive results for revenue and employee productivity, but more recent studies show ESOPs provide greater retirement savings for employees and can reduce wealth inequality. Loren Rodgers, executive director of the National Center for Employee Ownership (NCEO) in San Francisco, says, “It looks like

Series A stage startups give more weightage to ESOPs to retain talent

The element of talent plays a critical role in the growth trajectory of startups, and companies are increasingly leveraging the tool of Employee Stock Ownership Plan (ESOPs) to retain the best of their employees. A study by Trifecta Capital, a venture debt firm, says more than 50 percent of Series A startups have an ESOP

Before Selling Your Business You Should Consider An ESOP

In its simplest terms, an employee stock ownership plan (ESOP), is a qualified defined-contribution benefit plan comprised of company stock, held by shareholders at a company (which is usually all vested employees). An ESOP is a way to sell your company to your employees, enabling all employees to become shareholders in the company, and selling

Income inequality, financial crisis and the rise of Europe’s far right

Destinations by Design (DBD), a provider of high-quality destination management and event services to the incentive and corporate markets in Las Vegas for 28 years, has announced that effective November 5, 2018, the company’s stock has been sold to its employees through an Employee Stock Ownership Plan (ESOP). Representing a tangible way to reward those who have

Company credits growth to ESOP structure

Established in 1960 by Gordon “Buck” Horbuck and his wife, Ira, B&I Contracting began the transition into an employee-owned company in 1986. It completed it in 1991. The move to what's commonly referred to as an ESOP, at least based on share price, has been nothing short of remarkable: privately-held shares of the company are now worth

Whole Foods employees step up efforts to unionize

A group of Whole Foods employees stepped up efforts to unionize the grocery chain in an email blasted to thousands of workers Thursday, citing a laundry list of grievances stemming from Amazon’s purchase of the company last year. The group set up a forum on messaging app Slack called Whole Worker that allows members to anonymously

5 things to know about buying a company with an ESOP

One of the management team members let out a gasp. Two others shook their heads in disbelief and angst. The senior leader on their team had just informed them that the company they had been strategically targeting over the last several months was employee-owned, or at least partially employee-owned, through an Employee Stock Ownership Plan

How May The New Tax Act Affect Your ESOP?

The Tax Cuts and Jobs Act of 2018 (the “Act”) was signed into law by President Trump on December 22, 2017. It is heralded as making the most significant changes in corporate taxation in the US in more than 30 years. The Act makes changes to C corporations, S corporations and other pass-through entities. Some

Employee ownership embraced by green-energy pioneers

Three pioneers of the solar industry in the Bay Area are in different stages of transferring the businesses they created, but they are all traveling on a similar road. They are all transferring the ownership of their businesses to their employees. SOLARCRAFT Bill Stewart is the former CEO and co-owner of SolarCraft, a 34-year-old solar

A Guide to Employee Stock Option Plans

Employers can compensate their employees in three primary forms: cash, benefits and stock. Cash compensation - as would be expected - includes hourly wages, salaries, bonuses, contract income, benefit plan payouts and matching retirement plan contributions. Benefits include vacation, sick time, insurance, tuition, childcare, and other perks like expense accounts and company vehicles. Employers can

Two ESOP Bills Would Promote Employee Ownership

Two bills on employee stock ownership plans (ESOPs) have passed without dissent in the Small Business Committees in the House and the Senate, and both have bipartisan support. By unanimous vote, the House Small Business Committee passed the Main Street Employee Ownership Act, sponsored by Nydia Velaquez (D-NY), with a friendly amendment from Steve Chabot (R-OH). Kirsten

2018-03-20T05:42:16-05:00Tags: , |

ESOP Knowledge Can Provide Real Adviser Differentiation

When it comes to retirement and business succession planning, survey data shows clearly that small business owners have given relatively little thought to how they’ll shift into retirement or enact an exit strategy. According to Jerry Ripperger, vice president of consulting at Principal, more than 70% of business owners in the U.S. do not have

Joy Cone reaches a milestone that’s been a century in the baking

Here’s the scoop: Joy Cone Co. is celebrating its 100th anniversary. And in recent years the company has been on a delicious ride of expansions. What started out as a small local operation is now the world’s largest ice cream cone company. Producing more than 1.5 billion cones a year, it has operations in Hermitage,

Using ESOPs to Grow Your Business and Build a Dedicated Workforce – Part 2

Unlike other methods of raising capital, because an ESOP is also an employee retirement plan, the ESOP can also serve as a powerful engine for attracting and maintaining a competent and committed workforce. These goals are wholly complementary and achievement of the latter may well serve to insure the success of the former.  Here are