Employee Stock Ownership Plans

/Tag: Employee Stock Ownership Plans

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

Heath Ceramics made its employees into owners. Should you?

In 2015, Robin Petravic and Catherine Bailey, co-owners of iconic California ceramics brand Heath, were looking ahead to the 15th anniversary of their tenure. Over the last decade, the couple had transformed the company from a struggling legacy brand into a thriving enterprise that recently celebrated its 70th anniversary. Moreover, they had done it with a tightly held set

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

Employee Stock Plan Could Brew Up Productivity For Great Lakes

There’s a tradition at Cleveland’s Great Lakes Brewing Company. Each day around 4 o’clock, employees gather in the brewpub for a complimentary “shift beer.” It’s a chance to celebrate the fruits of their labor. Soon though, the employees at the 30-year-old company will be getting a new perk, probably worth a lot more than a

Have You Thought About Your Business Succession Strategy?

Owners often wait until it's too late to consider various options, at which time the only answer might be selling the business to a third party, perhaps a .competitor or a private equity group. For some businesses, that last-minute strategy ends with success, but for many owners, that is not an acceptable or desired solution

A wealth-building tool often more coveted than a 401(k) plan by employees

There are nearly 7,000 employee stock-ownership plans in the U.S., holding assets of $1.7 trillion, according to the National Center for Employee Ownership. More small to mid-size companies and some start-ups are looking at ESOPs as yet another attractive benefit they can offer job candidates in industries with high turnover rates. The Main Street Employee

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 With ESOPs Report Advantages for Business

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. Since the EPS was launched in 2000, the majority of responding companies have reported increases in profits for every year but two—2002 and 2010, which reflect the nationwide economic downturns in

Shareholders Are Stealing Our Jobs

It’s not the robots that are coming for American jobs. It’s not the immigrants. It’s not evil offshoring CEOs either. It’s the shareholders. Under shareholder capitalism, the U.S. labor force has become a liability—a cost to be contained—rather than an asset, and the decrease in worker well-being is a simple externality to be placed off

Chattanooga’s Adman Electric grows as employee-owned firm

Todd Moreland says he wanted to be an electrician since he was 16 years old at Ooltewah High School, following in the footsteps of both his father and grandfather. Starting 40 years ago as a teenager at Adman Electric, Moreland started making coffee, getting doughnuts, working in a warehouse and driving a truck before getting

Members of Congress Ask Trump to Protect ESOPs

Just as the ERISA Industry Committee (ERIC) did regarding the issue of missing participants in retirement plans, a group of legislators is calling out the Department of Labor (DOL) for engaging in enforcement activities against employee stock ownership plans (ESOPs) without providing meaningful guidance. Twenty-seven members of Congress sent a letter to President Donald Trump saying the

What if employees co-owned the business where they work?

What do Bernie Sanders and Paul Ryan have in common? Mr Ryan recently learned he has some Jewish ancestry, but there is at least one other thing, tucked between their otherwise diametrically opposed visions for the US economy: both advocate enabling more Americans to co-own the businesses where they work. Mr Ryan has been a

Flipkart Employees To Become Millionaires As Walmart To Buy ESOPs

Flipkart employees are expected to strike gold through the deal of acquisition of the e-commerce giant by Walmart. Flipkart has recently allowed its employees – if they want – to sell their stocks to its parent company. The employee stock options present at their disposal had their valuation increased as a result of the deal. The increase

What a ‘silver tsunami’ of retiring Baby Boomer business owners could mean for their workers

As Labor Day arrives -- and economic inequality rises on the political agenda -- a little noticed measure in the recently signed defense spending bill aims to address the widening wealth divide between workers and the owners or top executives who manage them. The measure, co-sponsored by Sen. Kirsten Gillibrand (D-N.Y.), is intended to expand financing options

Employee ownership can be a successful alternative to consolidation

Virginia’s business-friendly policies are well-known. In fact, it recently ranked fourth in CNBC’s “Best States for Business” analysis. But the state has another unique claim to fame: it is home to 299 businesses structured as employee stock ownership plans (ESOPs) — ranking Virginia sixth in the country. Only New York, California, Texas, Pennsylvania and Illinois