ESOP

/Tag: ESOP

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

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

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

KI Industries driven by employee ownership, engagement

Berkeley, Ill.-based KI Industries Inc., a supplier of decorative plastic and die-cast components, is driven by its employees in the form of an ESOP, or employee stock ownership plan. Since the ESOP inception in 2012, the organization has grown more than 500 percent, making a significant contribution to employee retirement plan accounts. With 65 employees

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

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

On worker cooperatives and workplace democracy

Think about the last job you held. As long as your check cleared, how much did you care about the company’s success? How much did you care about their goals and ambitions? Maybe a little, if you were a committed employee. Conversely, how much do you think the CEO or owner of the company cared

Johnny’s Pizza House celebrates 100% employee ownership

Johnny’s Pizza House has announced that the company reached its goal of becoming a 100% employee-owned organization. Founder Johnny Huntsman imitated the change, and work started in May 2000. Founded in 1967, Johnny’s Pizza House was supported and funded by members of the Huntsman family, friends of "Mr. Johnny," and some of the very first Johnny’s

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

Insurance brokerage Bender converts to employee-owned structure

Bender Insurance Solutions, a third-generation family-owned company in Roseville, has restructured into an employee-owned firm. The move from family ownership to being an Employee Stock Ownership Plan-run company is seen as a way to prepare for succession and to ensure the company remains independent, said Jillian Bender-Cormier, brand manager and partner of the independent insurance brokerage.

Consider An ESOP As Your First, Not Last, Resort

Despite appealing reasons for business owners to establish an employee stock option plan, or ESOP, an enormous knowledge gap exists that prevents many owners from even considering one.  Many view an ESOP as the last resort when contemplating an eventual retirement or succession plan, believing it too complicated. If that’s your view, let me address

CNC Indexing & Feeding Technologies Sells Company to ESOP

Mason, Ohio-based CNC Indexing & Feeding Technologies announces that the company is now owned by an Employee Stock Ownership Trust, effective immediately. In the transaction, current and future employees gain a beneficial ownership interest in the company without any personal monetary investment. The ESOP was developed to give back to CNC Indexing & Feeding Technologies’ employees and

Absolute Machine Tools Announces Sale of Company to ESOP

Lorain, Ohio-based Absolute Machine Tools announces that the company has been sold and is now owned by an Employee Stock Ownership Trust (ESOP), effective immediately. In the transaction, owners Steve and Courtney Ortner sold 100 percent of their ownership interest to a newly created ESOP, allowing current and future employees to gain a beneficial ownership interest in

Why a family-owned business should consider an ESOP

In the world of succession planning options, an employee stock ownership plan (ESOP) is an alternative to a third-party sale that warrants consideration from privately held business owners. An ESOP provides a tool for a business owner to create an internal, tax advantaged buyer for privately held stock without the need for the disruption of

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