Employee Ownership

//Employee Ownership

Workers in ESOPs Have Double the Retirement Savings

S Corporations are likely to be fully employee stock ownership plan (ESOP) owned, and S Corporation ESOPs, in particular, tend to prepare workers much better for retirement than other types of workplace retirement savings plans, according to the National Center for Employee Ownership (NCEO). ESOP participants have an average retirement balance of $170,326, more than

Callahan & Associates announces 100 percent employee-ownership model

After more than 30 years of contributing to the credit union movement, Callahan & Associates announces a new ownership model designed to allow the firm to continue to help credit unions build member value. By becoming 100 percent employee-owned, the organization solidifies its ongoing commitment to its employees and the credit union industry it serves.

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

Employees Run The Show At One Mesquite Casino

When we think of people who own casinos, we think of the larger-than-life figures – your Benny Binions, Howard Hughes or Kirk Kerkorians of the world.  And there are stockholder-owned casinos: Wynn, Sands and MGM for instance. One casino in Nevada is doing things differently. The Eureka Casino Resort in Mesquite -- 214 rooms -- is one of only two casinos in the country owned

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

Paper company sued over ESOP transactions

The fiduciary of the Appvion Inc. Retirement Savings and Employee Stock Ownership Plan sued the bankrupt paper company's former management team, its board of directors and a slew of advisers for allegedly inducing employees to take money out of their 401(k) accounts to purchase 100% of the stock of Appvion's parent company, Paperweight Development Corp.

Three Things That Will Boost Employee Engagement

A grade of 15 percent isn’t close to passing in any classroom. If a wise teacher saw that figure, he would take swift action to understand the student’s problem. The same should hold true for both employees and employers when they hear global employee engagement rates are hovering at 15 percent , per Gallup’s research. Or that a

Income inequality, financial crisis and the rise of Europe’s far right

Destinations by Design (DBD), a provider of high-quality destination management and event services to the incentive and corporate markets in Las Vegas for 28 years, has announced that effective November 5, 2018, the company’s stock has been sold to its employees through an Employee Stock Ownership Plan (ESOP). Representing a tangible way to reward those who have

A better way to share the wealth

Many Washington conversations about inequality focus on income. The amount of money that American workers and families make is indeed important for their economic security—on average, wages and salaries account for nearly 80% of income for U.S. households. The income inequality and wage stagnation that have persisted for decades certainly pose threats to the health of

Oklahoma trailer manufacturer acquired by Gazette parent Folience

Folience, the parent company of The Gazette, has acquired an Oklahoma-based manufacturer of equine and livestock aluminum trailers. Cimarron Trailers employs 135 workers at a 90,000-square-foot facility in Chickasha, Okla. With a dealer network across North America, the company reports it has more than 12,000 of its trailers on the road. The acquisition was finalized Monday,

New Cleveland Fund Will Acquire Businesses and Sell Them Back to Workers

Tameka Thomas had returned to society after a five-year prison sentence, and a month after her release, she landed a job with Evergreen Cooperatives in Cleveland with help from a re-entry transition program. “I thought it was going to be really, really hard to find employment when I came home,” Tameka Thomas says. “I am so thankful

Opinion: Employee Ownership and The Promise of Quality Jobs

In October the official United States unemployment rate dropped to 3.7 percent, which represents a 49-year low.  And yet, according to a recent Harris Poll, nearly 80 percent of American workers report living paycheck-to-paycheck, with little in the way of savings to handle any financial emergency. Compounding the problem (figuratively and literally), more than 70 percent of workers are

Film studio Aardman transfers to employee ownership

Bristol-based film studio Aardman, best-known for animations Wallace and Gromit and Shaun the Sheep, has transferred into employee ownership. Founders David Sproxton and Peter Lord have transferred the majority of Aardman’s shares into an employee ownership trust, which will hold the shares on behalf of the employer’s 140-strong workforce. The aim is to ensure that Aardman remains independent

Get the Most Out of Employee Stock Options

Over the years, employee stock options have become an increasingly common way to recruit higher-ranking employees and give them a sense of ownership in a company. According to the National Center for Employee Ownership, the number of workers holding options has grown nine-fold since the late 1980s. Indeed, stock options, which give you the right

At $49 billion company Essilor, employees are the largest shareholders

At The Essilor Group, an ophthalmics company based in France, employees are the largest group of company shareholders. To date, 55% of Essilor's 67,000 global employees are shareholders, and they own upwards of 8% of the company's share capital. All employees, regardless of seniority, are eligible to use their wages to purchase shares. Essilor, a $49 billion

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,

Employees become the owners at another St. Louis company

Jim Sramek, founder and CEO of Midwest Equipment Co., has transferred his ownership to the company's 72 employees through an Employee Stock Ownership Plan, or ESOP. Midwest Equipment is a commercial food service equipment distributor in Missouri, Kansas, Illinois and Arkansas. Founded in 1993 and headquartered in Fenton, it operates four primary lines of business:

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

Capital Lighting becomes 100% employee owned

Lighting and mirror manufacturer Capital Lighting is now 100% employee owned. The Flowery Branch, Ga.-based company announced its Employee Stock Ownership Plan (ESOP) effective September 28. Owners Mary Lou and John Lewis made the formal, surprise announcement to employees on Tuesday, Oct. 30 in a companywide breakfast meeting at its corporate office. The ESOP effectively