Employee Ownership

//Employee Ownership

Unprecedented Political Consensus Found in Employee Ownership

Research released today by the Employee Ownership Foundation (EOF) and the Rutgers School of Management and Labor Relations at The ESOP Association's 42nd National Conference in Washington, DC shows that employee owned businesses enjoy uniquely broad support among Democrats, Republicans, and Independents. Nearly three-fourths of respondents (72 percent) to the General Social Survey would rather work for an

Wilson Electric is now 100% employee-owned

Wilson Electric Services Corp. announced that the company’s ESOP (Employee Stock Ownership Plan) has purchased the balance of the company shares, making it 100 percent employee-owned. Wilson Electric, a leader in the electrical contracting industry, has been a partial ESOP since 2005, with employees owning 47 percent of the company’s overall shares. On May 21,

Celebrating Michael Keeling, ESOP Champion and Farsighted Leader

Attending last year’s annual national conference of the ESOP Association, I marveled at how it has grown. Once a gathering of roughly several dozen people, it has become the premier conference of employee ownership advocates, with nearly 1,000 attendees. Many people have contributed to the success of the ESOP movement over the past three decades,

The business of the future is ethical, sustainable, and employee-owned

You may not know it, but when you’re buying clothes from Eileen Fisher, you’re buying from an employee-owned company. Fisher founded the company in the early 1980s, but instead of going public, she sold 30% of the company to her own employees in 2006 (they now own 40%). That’s helped her keep the brand’s principles

A seat at the table

Silos tend to form as companies grow. You’ve got your office and field silos. Then, there are operations and sales silos. There are silos of executive leadership, department managers and field supervisors. Field labor has a silo of its own, too. “We have been really fortunate in our 30 years of business that we have

One way to close the wealth gap: make employees part owners

Building wealth in the U.S. today is difficult–especially for people of color. Over the last 30 years, adjusted for inflation, the average wealth of white households rose by 33% (buoyed by the fact that almost all of the wealthiest Americans are white), while the average wealth of black families in the U.S. dropped by half. Hispanic

Employees who want to buy Jet Airways should first look at America’s United

Regular flyers and employees of India’s oldest private airline, Jet Airways, are now stepping in to rescue the temporarily grounded carrier. A group of frequent flyers of Jet has approached the airline’s key lenders—including the State Bank of India (SBI) and ICICI Bank—with a buyout plan, the news agency IANS reported on May 05. The plan also

How a growing manufacturer became an ESOP

A fabricator’s roundtable at this year’s Fabricators & Manufacturers Association Annual Meeting, held in March in Nashville, brought up myriad topics, from the impact of fiber laser technology to advances in software. But near the end of the conversation, most roundtable participants agreed that success in fabrication doesn’t hinge on having a particular laser cutting

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

Study: Employee Ownership Narrows Gender and Racial Wealth Gaps

In the first-ever national study of low-income and moderate-income workers at employee-owned companies, researchers discovered employee stock ownership plans (ESOPs) enable families to significantly increase their assets, shrinking—though not eliminating—gender and racial wealth gaps. The research by the Rutgers Institute for the Study of Employee Ownership and Profit Sharing suggests employee ownership can reduce wealth

ESOP Roles and Responsibilities Assumptions

ESOP Roles and Responsibilities Assumptions – WTF         As a busy person constantly on the go, you make assumptions about all kinds of things, every day. In fact, you just made one about this article. Do me a favor, park your assumption for a moment and instead ask a question: why would I — someone who

The Financial Rewards of Selling to Employees

Our April issue of Oregon Business magazine featured a column by Bob Moore, the founder and president of Bob’s Red Mill Natural Foods. Moore wrote about his decision to “give” ownership of his company to employees through an employee stock ownership plan, or ESOP. The column provoked readers to take Moore to task for describing his decision to

Huawei’s claim of 100% employee ownership false, may be state-owned

A recent research paper examining Huawei’s ownership structure published Monday refutes the company’s claim of being wholly owned by employees and says that the identity of the actual owners is unknown, and may potentially include the Chinese government. Authored by Donald Clarke of George Washington University and Christopher Balding of Fulbright University Vietnam, the report states that

4 Things That Will Give Employees a Sense of Ownership

You’ve seen the headlines — employee engagement is frighteningly low. In fact, research from Gallup indicates that only  15 percent  of employees globally are engaged in their work. There are numerous strategies intended to combat this apathy and engage employees, but one of the most important involves cultivating a culture of ownership. When employees feel a sense of ownership

Using Employee Ownership to Build a More Equitable Future for Work

When the trash collectors of the 1930s (then known as “scavengers”) formed cooperatives to organize their work, they did so to meet an immediate and pressing need for better jobs. Their intervention in the labor market was a crisis response to market gaps. But they also laid out a vision and a set of principles

How Massachusetts is working to get retiring business owners to let their employees take over

Like every state in the U.S., Massachusetts is worried about what will happen when the baby boomer owners of thousands of small to midsize businesses reach retirement age, in what is being called the “silver tsunami.” Fewer and fewer small business owner now expect to pass their enterprise onto their children and many older entrepreneurs, concerned

Employees buy prominent Cleveland architecture firm

The namesake founder and owner will be retired, but the Richard L. Bowen + Associates architecture and engineering firm will keep the name as employees conclude their purchase through an employee stock ownership plan. "There's a brand there. Why would we want to change it?" said Allan Renzi, the prominent firm's new president. The transfer of

How Companies Survive And Thrive After The Founder Retires

We’re both planning to attend the annual conference of the National Center for Employee Ownership in Pittsburgh next week. The prospect got us thinking about employee stock ownership plans, or ESOPs, which are even now one of the most misunderstood and underutilized devices in an entrepreneur’s toolkit. Let’s review the bidding. At some point you will want