Employee Stock Ownership Plans

/Tag: Employee Stock Ownership Plans

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

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,

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

Shareholders Are Stealing Our Jobs

It’s not the robots that are coming for American jobs. It’s not the immigrants. It’s not evil offshoring CEOs either. It’s the shareholders. Under shareholder capitalism, the U.S. labor force has become a liability—a cost to be contained—rather than an asset, and the decrease in worker well-being is a simple externality to be placed off

Chattanooga’s Adman Electric grows as employee-owned firm

Todd Moreland says he wanted to be an electrician since he was 16 years old at Ooltewah High School, following in the footsteps of both his father and grandfather. Starting 40 years ago as a teenager at Adman Electric, Moreland started making coffee, getting doughnuts, working in a warehouse and driving a truck before getting

Members of Congress Ask Trump to Protect ESOPs

Just as the ERISA Industry Committee (ERIC) did regarding the issue of missing participants in retirement plans, a group of legislators is calling out the Department of Labor (DOL) for engaging in enforcement activities against employee stock ownership plans (ESOPs) without providing meaningful guidance. Twenty-seven members of Congress sent a letter to President Donald Trump saying the

What if employees co-owned the business where they work?

What do Bernie Sanders and Paul Ryan have in common? Mr Ryan recently learned he has some Jewish ancestry, but there is at least one other thing, tucked between their otherwise diametrically opposed visions for the US economy: both advocate enabling more Americans to co-own the businesses where they work. Mr Ryan has been a

Flipkart Employees To Become Millionaires As Walmart To Buy ESOPs

Flipkart employees are expected to strike gold through the deal of acquisition of the e-commerce giant by Walmart. Flipkart has recently allowed its employees – if they want – to sell their stocks to its parent company. The employee stock options present at their disposal had their valuation increased as a result of the deal. The increase

What a ‘silver tsunami’ of retiring Baby Boomer business owners could mean for their workers

As Labor Day arrives -- and economic inequality rises on the political agenda -- a little noticed measure in the recently signed defense spending bill aims to address the widening wealth divide between workers and the owners or top executives who manage them. The measure, co-sponsored by Sen. Kirsten Gillibrand (D-N.Y.), is intended to expand financing options

Employee ownership can be a successful alternative to consolidation

Virginia’s business-friendly policies are well-known. In fact, it recently ranked fourth in CNBC’s “Best States for Business” analysis. But the state has another unique claim to fame: it is home to 299 businesses structured as employee stock ownership plans (ESOPs) — ranking Virginia sixth in the country. Only New York, California, Texas, Pennsylvania and Illinois

Will New US Law Ease Employee Stock Ownership Plans (ESOPs)?

The United States has officially passed a law that strives to make it easier for small and midsize businesses to transition ownership to their employees. The law involves Employee Stock Ownership Plans (ESOPs). The Act provides no extra funding for ESOP projects, but it does fast-track how loans are dispersed for those making the transition

Small business owners are getting a new incentive to sell to their employees

The federal government just made it a lot easier to form an employee-owned business. In an increasingly rare example of bipartisan cooperation, President Donald Trump on Aug. 13 signed a defense bill into law that included a popular provision that allows the Small Business Administration to straightforwardly loan money to employee-owned businesses that wish to buy out retiring small

Plan Your Succession

If you’re fond of sports analogies, think about how football teams hold players in reserve to back up other team members when they’re sidelined with injuries. Baseball clubs like to cross-train players in different positions to keep their squads versatile. As they contemplate moving on to the next stages of their lives, shouldn’t owners of

British Study Makes the Case for a National Employee Ownership Policy

In Great Britain, an estimated 325 employee-owned businesses employ over 200,000 people. According to Deb Oxley, CEO of the Employee Ownership Association, “Hundreds more companies are in the pipeline waiting to convert…and the sector is forecast to double over the next decade.” To support this effort and build public support for sectoral growth, the British employee ownership

ESOPs offer unique benefits and succession planning options

I am the sole owner of my business, and I am planning to retire within the next five years. I have considered an employee stock ownership plan, (ESOP) as one of my succession options. Will you explain the benefits and risks? We applaud you for considering your succession plan from a variety of angles, including

Cleveland’s Great Lakes Brewery to Become Employee-Owned

“Growing numbers of US companies are giving workers financial stakes via employee stock ownership plans,” writes Judy Stringer in Cleveland Crain’s Business. Now Great Lakes Brewing Company is poised to join their ranks. Bolstr, a small business crowdfunding site, listed Great Lakes as the number-one craft brewery in Ohio in a 2015 article and described the brewpub as follows: Great Lakes

Charlie Pillsbury furthers the employee-ownership cause

The late George S. Pillsbury, a Pillsbury executive who went on to distinguish himself as a bipartisan-oriented Republican in the Minnesota Legislature in the 1970s and 1980s, also was interested in spreading the wealth. He and his late wife, Sally, who died this year, were actively engaged philanthropists. George Pillsbury also liked to see employees

Employee stock ownership plans benefit retiring owners and employees

Employee stock ownership plans (ESOPs) are a way for company owners who wish to retire and do not have family members involved in the business to ensure the continued life of the company. They also provide a good return on years of investing time, effort and money in building the company and reward employees who