ESOPs

/Tag: ESOPs

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

ESOPs rising: Employee ownership gaining traction

When people think of employee-owned businesses, large companies such as grocery chain WinCo — with scores of locations across the western U.S. — spring to mind, said Poncho Baker, the new CEO of Ritchie Trucking in Fresno. But for owners who want to see their business and life’s work continue, and for workers looking for

Retaining skilled workers with an employee ownership plan

Jeff Heck had a problem. His company, ATEC Steel, a steel fabricator of storage tanks and other structures, had grown exponentially since he opened the doors in 2006. Maintaining this growth required that his major customers would come back anytime when they needed a steel fabrication, such as an above-ground storage facility. To find and retain

ESOPs More Valuable Than Just a Retirement Savings Vehicle

Studies have shown that companies that sponsor employee stock ownership plans (ESOPs) see positive results for revenue and employee productivity, but more recent studies show ESOPs provide greater retirement savings for employees and can reduce wealth inequality. Loren Rodgers, executive director of the National Center for Employee Ownership (NCEO) in San Francisco, says, “It looks like

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

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

Before Selling Your Business You Should Consider An ESOP

In its simplest terms, an employee stock ownership plan (ESOP), is a qualified defined-contribution benefit plan comprised of company stock, held by shareholders at a company (which is usually all vested employees). An ESOP is a way to sell your company to your employees, enabling all employees to become shareholders in the company, and selling

The Financial Rewards of Selling to Employees

Our April issue of Oregon Business magazine featured a column by Bob Moore, the founder and president of Bob’s Red Mill Natural Foods. Moore wrote about his decision to “give” ownership of his company to employees through an employee stock ownership plan, or ESOP. The column provoked readers to take Moore to task for describing his decision to

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 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

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

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

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

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 Ownership Plans: Can They Close the Wealth Gap?

Much has been written about the growing trend of income inequality in the US; we hear less often about the wealth divide, which is even more stark. While the top 10 percent of US households today own 51 percent of the country’s wealth, the bottom 50 percent own one percent. With no savings to fall back on, families

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

European start-ups call for stock option reform to help them compete with Silicon Valley

The bosses of 30 European start-ups have called on politicians to reform rules around employee stock ownership to help them attract more talent and compete with their Silicon Valley counterparts. Chief executives from firms including TransferWise, Stripe, PayPal-owned iZettle and recently listed Farfetch co-signed an open letterurging lawmakers in the continent make changes to existing regulations on