Employee Stock Ownership Plan

/Tag: Employee Stock Ownership Plan

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

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

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

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

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

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:

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

A custom solution for a family-owned business

The owners of a successful manufacturing business in West Michigan were struggling to develop a plan for the future. For the second-generation sibling owners, the clock was ticking to find a succession plan that fit them, their families and the company. One third-generation family member has been a key person for the company but did

BSA named a Certified ESOP

BSA, a national integrated design firm, has been named a Certified ESOP by Certified EO, a certification program for employee-owned companies. Founded in 1975, BSA has always been owned by employee shareholders, but it opened ownership to all employees earlier this year when it launched its first-ever Employee Stock Ownership Plan (ESOP). "Becoming an ESOP

Coeur d’Alene construction company converts to employee ownership

Rick Carlson and his wife, Shelley, started Inland Waterproofing Services Inc. at their kitchen table and grew the specialty construction company into a business with large commercial accounts. When Boeing built its 40-58 777X composite wing factory in Everett, the Coeur d’Alene company waterproofed 2 miles of tunnels underneath the facility. The company also waterproofed foundations for

Sharing the spoils with employee share ownership

The proposal by John McDonnell, Labour’s shadow chancellor, to force companies of a certain size to hand over shares to their employees is controversial. But while his mechanism for increasing workers’ ownership has its critics, McDonnell’s motivations are widely shared. The arguments for employee share-ownership – improved engagement and motivation, for example – are solid.

North KC-based construction company becomes 100 percent employee owned

The last two private owners for Mega Industries Corp. agreed to sell their shares and make the company 100 percent employee owned. Founded in 1992 in North Kansas City, Mega Industries created an employee stock-ownership plan in 2006. However, CEO Brian Gordon and COO Craig Bridgeman still owned shares privately, outside the ESOP. They have sold those shares back

A Giant Company Wanted to Buy His Business for $120 Million. He Walked Away From It

On April 17, 2000, Gary Erickson told his wife, Kit Crawford, he needed to go for a walk. He'd spent the past three months in a haze--he was starting to realize that much. This day had seemed inevitable, and he'd let himself float toward it, not fighting, nor even resisting. In an hour, he was scheduled to meet with

Transferring Ownership Of A Midsized Firm: How HdL Made Its ESOP Work

Some 70% of owners of small and midsized U.S. businesses will retire in the next 20 years, selling or passing on $10 trillion in assets (California Association of Business Brokers). Yet 58% of 200 such firms surveyed last year by Wilmington Trust don’t have an ownership transition plan for the business. That’s a recipe for trouble for

Two linked KC companies go ESOP and announce rebranding

Two linked Kansas City companies have become employee-owned — under a new brand name. M.E. Group Inc. and Forte Building Science are now BranchPattern Inc. and have established an employee stock-ownership plan (ESOP), according to a release from BranchPattern. The company specializes in building construction consulting and is based in Overland Park. “People are at the

A Little Helping Hand: U.S. Congress And ESOP Support

Since 1974, very little legislation has been passed by the United States Congress regarding employee ownership initiatives. In the last two years, two new bills have made their way through the legislative chambers with the aim of encouraging employee ownership in U.S. companies: the 2017 and 2019 National Defense Authorization. Both bills extend Small Business