Employee Ownership

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The benefits to business owners of selling through an ESOP

A growing trend among business owners is selling their companies to an employee stock ownership plan (ESOP). Such an approach allows owners to cash out their equity interest in the business and, at the same time, stay actively involved with the company. While a strategic buyer or a private equity fund may offer more money

I’m Here To Tell You We Sold The Company

“I’m here to tell you that we sold the company.” Those were the words that Kris Maynard, CEO and Co-Founder of Essential Ingredients, said to a room packed with loyal employees who were gathered under the pretense of a 15-year anniversary party. Instead, their trusted leadership team had just broken the news that everything was about

For Goodness’ Sake, Start Teaching About Employee Ownership

It’s inexplicable. Why, with few exceptions, do today’s business and law schools and university finance and accounting departments shun teaching about employee ownership? Why isn’t it a question on the bar, CPA or CFA exams? Why isn’t it a topic in academic and public sector conversations about community and economic development?  “My students had never

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

‘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

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%)

Staff stock options plan can help bridge the wealth gap

Remember when they said that a rising tide lifts all boats? Well, that wasn’t entirely true. Africa had some of the fastest growing economies in the world posting an average of 5.4 percent of gross domestic product (GDP) growth between 2000 and 2010, adding about Sh7.5 trillion annually to GDP. McKinsey Global Institute even described

Saalex Becomes Employee-Owned Company

Saalex Corp. has announced that the company is now owned by its employees through an employee stock ownership plan. Employees of the Camarillo engineering and information technology services company will receive stock allocations annually that will vest over a period of time and increase in value as the company grows. Chief Executive Travis Mack said

How employee ownership can prevent loss of beloved businesses and local jobs

As baby boomers age, the nearly 25 million jobs they have created nationwide are at risk. In Santa Clara County alone, roughly 15,000 boomer-owned businesses account for nearly 50% of private businesses that have employees, according to research by Project Equity. Only 15% will successfully pass to the second generation, and there will not be

Is employee ownership about to have a moment?

The move to advance employee ownership is gaining momentum. As employee-owned businesses have grown steadily over the last decade, demographic trends and a surge of interest in a more equitable economy have helped put these business structures on the national agenda. One key factor is a phenomenon known as the ‘silver tsunami.’ An unprecedented number

Sharing profits and ownership with workers not only make them happier, it benefits the bottom line too

Near-record low unemployment has companies fumbling to find the best ways to recruit and retain workers. Our research suggests a sure-fire way to do just that: give them a real stake. By that we simply mean sharing some of the profits and even ownership with the men and women who are fundamental to their companies’ success. Most Americans say

Making it in Vermont: $140 million firm takes employee ownership seriously

You know the entrepreneur who can fix anything on the place with the materials at hand? That’s Proctor-based Carris Reels Inc., only on a different scale. Although the premise of the reel company is simple (“we make squares into circles,” as CEO Dave Ferraro puts it) there are parts involved, and most of those parts

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

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

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

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

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