Employee Ownership

/Tag: Employee Ownership

How An ESOP Made All The Difference For An Early Entrant Into The Craft Beer Business

Before there was a craft brewery on every corner, there was Mass Bay Brewing Company. Founded on Boston’s waterfront by Dan Kenary, Richard Doyle and George Ligeti, Mass Bay was in the vanguard of the current craft beer movement. A postgraduation trip to Europe in 1982 had introduced college friends Kenary and Doyle to the

CITIC Securities launches stock ownership plan

CITIC Securities, China’s largest full-service investment bank, disclosed its employee stock ownership plan late Monday, which will offer employees a total of no more than 10% of the company’s total A shares and H shares, The Paper reported. While each employee shall not hold more than 0.5% of the company’s total shares, they can still hold an

Uber’s Great Idea to Offer their Drivers Equity at IPO Price

Uber and Lyft, the two ride-hailing giants, both are planning initial public offerings of their stock. And both of them are doing something interesting: offering their most valuable drivers cash bonuses that can be exchanged for equity at the IPO price — giving them the opportunity to buy in on the same terms as the

From the big stage to the political arena: It’s time for employee ownership to get its closeup

Liberalism is ascendant, at least in the Democratic Party. New Gallup polling just out shows that for the first time, more than half of Democrats identify as “liberal” as opposed to “moderate” or “conservative.” The left’s newly minted hero Alexandria Ocasio-Cortez is becoming the right’s new favorite foil. Her Green New Deal and amplification of

How King Arthur Flour’s Unusual Leadership Structure Is Key To Its Success

In 2004, the leadership of King Arthur Flour gathered to formally sign over control from longtime owners Frank and Brinna Sands to the company’s employee stock ownership program (ESOP). The two had been gradually transferring shares in the Norwich, Vermont, flour maker to the ESOP since 1996 as part of a long-planned exit. Opposed to

Why The Boss At HB McClure Sold The Company To His Employees

When Bob Whalen became president and CEO of HB McClure back in 2008, the employees were nervous. He was taking over from the grandson of Herbert Bassett McClure, who had founded the Harrisburg, Pennsylvania, heating, ventilation and air-conditioning firm in 1914. The company, which serves both commercial and residential customers, had been profitable for a

Making a Case (and Chairs, and Desks) for Employee Ownership

Employee-owned businesses tend to outperform their competitors, a growing body of research shows. According to the National Center of Employee Ownership, businesses with employee ownership models grow sales and employment at a faster rate than businesses without such programs. Employee-owned firms also perform better than their counterparts during recessions, per research from Georgetown University. For

Support for Employee Ownership Climbs Nationally

Last year’s Main Street Employee Ownership Act, which authorized firms seeking to convert to employee ownership to access Small Business Administration partially-guaranteed loans of up to $5 million, was the first pro-employee ownership law passed by Congress in more than two decades. But, according to Rachel Cohen of the Intercept, the law may presage a larger wave

Could Expanding Employee Ownership Be The Next Big Economy Policy?

TWO LIKELY DEMOCRATIC presidential contenders in 2020 have made quiet strides in recent years to bring into vogue a little-known policy that could reduce economic inequality — one that harnesses current law to expand workers’ ability to become owners in their place of employment. Sens. Bernie Sanders, I-Vt., and Kirsten Gillibrand, D-N.Y., have worked to advance legislation

Setting A Company On The Right Path

(This column concludes the fictional story of Ben, a company president who has faced some tough decisions. The first installment in the series can be found here. With our next column, in January, we will forgo the appeal of fiction and return to our customary mixture of reportage, analysis, and business advice. We hope you will

Three Things That Will Boost Employee Engagement

A grade of 15 percent isn’t close to passing in any classroom. If a wise teacher saw that figure, he would take swift action to understand the student’s problem. The same should hold true for both employees and employers when they hear global employee engagement rates are hovering at 15 percent , per Gallup’s research. Or that a

A better way to share the wealth

Many Washington conversations about inequality focus on income. The amount of money that American workers and families make is indeed important for their economic security—on average, wages and salaries account for nearly 80% of income for U.S. households. The income inequality and wage stagnation that have persisted for decades certainly pose threats to the health of

New Cleveland Fund Will Acquire Businesses and Sell Them Back to Workers

Tameka Thomas had returned to society after a five-year prison sentence, and a month after her release, she landed a job with Evergreen Cooperatives in Cleveland with help from a re-entry transition program. “I thought it was going to be really, really hard to find employment when I came home,” Tameka Thomas says. “I am so thankful

Opinion: Employee Ownership and The Promise of Quality Jobs

In October the official United States unemployment rate dropped to 3.7 percent, which represents a 49-year low.  And yet, according to a recent Harris Poll, nearly 80 percent of American workers report living paycheck-to-paycheck, with little in the way of savings to handle any financial emergency. Compounding the problem (figuratively and literally), more than 70 percent of workers are

Get the Most Out of Employee Stock Options

Over the years, employee stock options have become an increasingly common way to recruit higher-ranking employees and give them a sense of ownership in a company. According to the National Center for Employee Ownership, the number of workers holding options has grown nine-fold since the late 1980s. Indeed, stock options, which give you the right

Employee Ownership

The world seems to agree that employee ownership is beneficial to business. Any idea that may unite the philosophy of Margaret Thatcher, the Shadow Chancellor John McDonnell and academic researchers must be worth consideration. In the UK the idea has taken many forms. In addition to the confiscatory plans launched at the Labour Party Conference,

Companies, Employees Share Benefits of Strong Performance

The results of this year's Economic Performance Survey (EPS) show that, once again, companies belonging to The ESOP Association have experienced positive corporate performance. Just as importantly, the EPS once again shows that when companies perform well, employee owners share in the rewards. This year, new data reveal a new facet of how ESOP (employee

How This Third-Generation Family Business Has Minted 70 Millionaires

If you've driven through Upstate New York or Vermont, there's a decent chance you've stopped at a convenience store with a brick-red-and-white cursive logo whose distinctly '50s vibe brings a little ice cream parlor nostalgia. Inside, there's the standard convenience-store fare, chips and sodas, but there's also usually an ice cream counter. This would be one

When Sears Flourished, So Did Workers. At Amazon, It’s More Complicated.

Half a century ago, a typical Sears salesman could walk out of the store at retirement with a nest egg worth well over a million in today’s dollars, feathered with company stock. A warehouse worker hired now at Amazon who stays until retirement would leave with a fraction of that. Much as Sears has declined

BSA named a Certified ESOP

BSA, a national integrated design firm, has been named a Certified ESOP by Certified EO, a certification program for employee-owned companies. Founded in 1975, BSA has always been owned by employee shareholders, but it opened ownership to all employees earlier this year when it launched its first-ever Employee Stock Ownership Plan (ESOP). "Becoming an ESOP