ESOPs

/Tag: ESOPs

More stocks for all Americans may be a better wealth redistribution method

Democratic Party leaders have made Wall Street “greed” and corporate financial engineering, such as stock buybacks, a priority of efforts to reduce wealth inequality. Policy recommendations to tax stock market gains and target private equity are popular, but one idea that many high-profile Democratic hopefuls have supported in the past has not received much attention

Fighting Capitalism With Capitalism

As a human-resources professional, Jennifer Briggs got used to firing people. She’d refer to it as “layoffs,” “right-sizing,” or whatever euphemism her employer wanted her to use at the time. She was a foster child turned single mother who had relied on food banks to feed her kids, and, as unpleasant as it was, managing

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.

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

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 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

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