Employee Stock Ownership Plans

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New Structures For Protecting Impact Companies’ Missions

One of the thorniest problems that impact companies face is how to expand—that is, finding ways to scale without selling out. For one thing, growth can involve undermining an enterprise’s mission. Also, a business that, say, brings on equity investors takes the chance of losing control to a less mission-focused partner. With that in mind,

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

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

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

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

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%)

Business ServicesESOPs Offer Advantages to Sellers, Buyers, Employees

Are Employee Stock Ownership Plans the key to sustainable business in the Mahoning Valley?  As privately held business owners approach their 60s and 70s, a looming question before them is how to transition into retirement, while ensuring that their life’s work in businesses they built from the ground up continue to grow. Many local businesses

How to create a construction company legacy

Every construction company and its owners eventually face succession issues. Owners who choose to ignore succession planning until an unexpected event forces the issue may face fewer choices, little time to react and a decrease in company value. However, proper planning can create peace of mind and increase the chances of a smooth transition that

Studying Ways to Reshape the Workplace and Boost Middle Class Wealth

Hiring a diverse workforce enables companies to tap a larger pool of knowledge and perspectives, creating opportunities for significant growth. It can also lead to the occasional conflict, as employees from vastly different backgrounds must learn to coexist. Joo Hun Han, an assistant professor of human resource management at the School of Management and Labor

Blue-collar capitalists

IDA TARBELL, the huge muckraker of the early twentieth century, not simplest wielded her pen against Standard Oil. She also feeble it to advocate for better versions of capitalism. In “Recent Ideals in Enterprise”, a e book from 1916, she explained how William Cooper Procter, a pioneering Episcopalian, launched profit sharing in 1887 and come

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

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

ESOPs Offer Additional Business Opportunity for Retirement Plan Advisers

A true employee stock ownership plan (ESOP) is one in which all eligible employees—from rank and file to managers and owners—have a piece of ownership of the company through the ESOP, which only has company stock—except for a little cash—as an investment. However, with frequent company stock lawsuits against 401(k) plan sponsors and Department of Labor (DOL) litigation

The Bizarre Case of a Massive Employee-Ownership Flop

Much is said about the benefits of employee stock ownership plans, known as ESOPs: They're a good option for helping business owners tap into the value of their companies without engaging in the public markets. They have been shown to boost employee morale and to improve profits. But less is said about the potential downsides--and the downright

The Short Life of Enlightened Leadership (and How to Extend It)

As recently as the 1980s, many publicly traded U.S. corporations idealistically sought to spread their wealth among their employees. Generous benefits such as profit sharing, stock ownership, lifetime pensions, career-long training, and even job security were routine at such companies as AT&T, General Electric, Hallmark, J.C. Penney, Procter & Gamble, and Sears. But these practices mostly

What Can Nonprofits Learn from ESOPs?

The United States is in the midst of one of the largest intergenerational transitions in its history, as 10,000 baby boomers retire every day. While this “silver tsunami” has been written about extensively in terms of the healthcare industry, its economic impacts on the workforce, and the consequent need for affordable senior housing, the transition’s implications on business

Survey Shows ESOP Workers Have Higher Retirement Savings

A recent survey shows Employee Stock Ownership Plans (ESOPs) offer higher retirement savings than other retirement plans. The survey, released by the National Center for Employee Ownership (NCEO) shows ESOP participants have more than twice as much in their retirement accounts compared to non-ESOP companies with defined contribution plans. An ESOP is a type of