Summary
American workers at nearly every level of the income spectrum fail to save properly to be secure in retirement. Addressing this challenge will require a comprehensive policy discussion by both federal and state policymakers. Employee stock ownership plans (ESOPs) are the primary form of employee ownership, and for reasons explored in this report, companies organized as S corporations are especially likely to be fully ESOP owned. This report finds that employee ownership in these companies, called “S ESOPs,” plays a vital role in boosting Americans’ retirement security, while also increasing workplace productivity and pride of ownership among employee-owners.