Congress designed ESOPs to be the most cost-effective means for both owners and companies to provide for business transition. One of the most difficult problems for owners of closely-held businesses is finding a way to turn their equity in a business into cash for retirement or other purposes. The decision to sell is more than … Read More
This mini-case study examines ComSonics, which first adopted an Employee Stock Ownership Plan (ESOP) in 1975, introducing its culture and its unusual Employee Advisory Committee.
This mini-case study examines employee share ownership at National Van Lines, where an Employee Stock Ownership Plan (ESOP) provided a family-run business a succession plan that ensured the continuation of the company and protected employee jobs. Just one-third of family businesses successfully transition from the first to the second generation of ownership and only 12% … Read More
This case study examines employee share ownership at Central States Manufacturing, where the employee stock ownership plan (ESOP) shares stunning sums of wealth with employees. Central States designs its ESOP to allow participants to access a portion of their ownership wealth while they are still employed at the company, through hardship and service withdrawals. This … Read More
This case study examines employee share ownership at North State Grocery, where the Employee Stock Ownership Plan (ESOP) solved a transition challenge in a company owned by two siblings. Thanks to the ESOP, long-term employees, including frontline staff such as cashiers and bakery workers, build a larger cushion of retirement savings than is typical in … Read More
This case study examines employee share ownership at Parksite, Inc., where the employee stock ownership plan (ESOP) is paired with a strong company culture and high job quality. For the company’s co-founders, the ESOP provided a solution to a major transition challenge. The company’s long-term employees accumulate considerable stock wealth through the ESOP. Discussion questions … Read More
This is a survey course that explores the variety of ways that businesses can compensate employees with shares of equity, profits, or gains and the human resource management, employment relations, organizational and individual motivational issues that such practices raise. The class will use the Harvard Business School case study method where each class will be … Read More
This ASPPA certificate course develops concepts for an administrator to better understand ESOPs and the intricacies of plan administration for ESOPs. It is specifically designed for administrators and candidates transitioning into intermediate ESOP areas. All ASPPA examination and educational materials are copyrighted. No examination or educational materials can be copied, reproduced or shared in any … Read More
This is a self-help manual for enhancing the culture and results at your ESOP company.
Laws in many countries mandate paying men and women equally when in similar jobs. Such laws, coupled with considerable organizational efforts, lead some scholars to contend that within-job pay inequality is no longer a source of the gender pay gap. This article argues important differences in a widely used form of pay heretofore overlooked in … Read More
This course will explore the contemporary revival of interest in broad based employee share ownership structures. We will investigate the legal and policy frameworks that presently structure employee ownership.
Series of videos about employee ownership produced by the Pennsylvania Center for Employee Ownership. The Millionaire Grocery Clerk At the grocery chain WinCo Foods, grocery clerks become millionaires. How? WinCo is employee owned through an ESOP. ESOPs are a win win win win – businesses get significant tax breaks, owners get paid full fair market … Read More
Research linking broad‐based employee stock ownership (BESO) with firm performance continues to receive considerable attention both in and outside the field of management. Despite the evidence being generally positive regarding the BESO–firm performance relationship, there has been a relative dearth of research providing insights into the circumstances surrounding the effectiveness of BESO. With this research … Read More
This study investigates how the effect of employee stock ownership on financial performance may hinge on the diverse cultural and societal contexts of European countries. Based on agency and national culture theories, we hypothesize that the positive relationship between employee stock ownership and return on assets (ROA) is stronger in those nations with lower uncertainty … Read More
Drawing on social identity theory, this research frames a multimediational model that delineates how broad‐based employee stock ownership (BESO) and employee‐perceived involvement practice in tandem yield a productive workforce at the organization level. In our theoretical model, we propose that social cohesion and voluntary turnover are collective attitudinal and behavioral outcomes resulting from the shared … Read More
The first comprehensive analysis of Department of Labor ESOP investigations ever conducted, plus practical advice from experts.
Estimated Number of Plans and Employees; Value of Plan Assets.
While all kinds of businesses become employee stock ownership plan (ESOP) companies, there is a large percentage of engineering firms that have chosen the ESOP structure. Why so?
This presentation discusses five myths surrounding employee ownership…
Over the years, the NCEO has reported on new research on employee ownership and corporate performance. Now that a substantial body of work exists on the subject, they thought it would make sense to summarize it in one place.
Olivia Nash, an analyst at leading hedge fund BlueShark Capital Management, had just finished listening to the hour-long earnings call for Twitter’s Q4 2017 results. Was Twitter doing well? That depended on which numbers she chose to believe. According to Generally Accepted Accounting Principles (GAAP), Twitter had recorded a $108M net loss for 2017. But … Read More
This short book from the National Center for Employee Ownership explains how ESOPs work in a clear and concise manner.
The purpose of this paper is to explore employee participation in ownership and control in a modern corporation and its impacts on intra-organizational social capital and workplace dynamics.
While family firms tend to be highly committed to their employees, scholars contend that founding family owners are likely hesitant when it comes to sharing ownership broadly with non-family employees. Taking a heterogeneous view of family firms, this study investigates the implications of different familial control‐enhancing mechanisms on the use of broad‐based employee ownership programs … Read More
Purpose A growing number of econometric examinations show that works councils substantially shape the personnel policy of firms in Germany. Firms with works councils make greater use of various human resource management (HRM) practices. This gives rise to the question of whether employers view the shaping of personnel policy positively or negatively. Against this background, … Read More