ESOPs

/Tag: ESOPs

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

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

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

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

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

Companies, Employees Share Benefits of Strong Performance

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. Just as importantly, the EPS once again shows that when companies perform well, employee owners share in the rewards. This year, new data reveal a new facet of how ESOP (employee

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

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

Company credits growth to ESOP structure

Established in 1960 by Gordon “Buck” Horbuck and his wife, Ira, B&I Contracting began the transition into an employee-owned company in 1986. It completed it in 1991. The move to what's commonly referred to as an ESOP, at least based on share price, has been nothing short of remarkable: privately-held shares of the company are now worth

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

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.

Employee Ownership & ESOPs: Why Small Business Owners Need To Pay Attention

In 2011, the baby boomer generation began turning 65. With the majority of businesses in the nation owned by persons over the age of 45, the number of business owners looking to retire in the next 15 years could place over $10 trillion in assets for sale. In California alone, over 12 million businesses will

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