This booklet helps business owners evaluate employee ownership. Thousands of business owners have decided that employee ownership is the best way to preserve the job security of their workforces and protect the character of their companies while providing them and their families fair value. In “Who Should Own Your Business After You?,” several of them … Read More
This significant new study shows that majority employee-owned companies with Employee Stock Ownership Plans (ESOPs) are outperforming non-employee owned companies during the COVID-19 pandemic in the areas of job retention, pay, benefits, and workplace health safety. The study reveals that ESOPs have been more proactive about ensuring the safety of employees during the pandemic and … Read More
Many companies we encounter have a pretty good idea of what kind of employee ownership plan they want to use, usually based on specific needs and goals. However, sometimes they might be better served by another kind of stock plan. Others say they’d like to have an employee ownership plan, but they’re not sure what … Read More
This short web article introduces how an ESOP works, rules, and tax advantages.
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 case study describes John Lewis Partnership. John Lewis Company has been in business since 1864. In 1929, it became the John Lewis Partnership (JLP) when the son of the founder sold a portion of the firm to the employees. In 1955, he sold his remaining interest to the employee/partners. JLP has a constitution and … Read More
To our members and the wider cooperative community. We are thinking about you and strategizing about how best to support your businesses and people during the evolving situation. We know that at this point, many of us are receiving information from a multitude of sources, which can feel overwhelming. The USFWC is actively working to curate … Read More
This PowerPoint presentation is a case study that is part of Class 4 from the Course: Topics in Corporate Governance: Techniques of Equity Compensation. The case study discusses Chatsworth Products, Inc. (CPI), a leading manufacturer of systems designed to organize, store and secure IT infrastructure equipment. This presentation and case study is part of the … Read More
In this short video, Dr. Marshall Vance describes his research on equity compensation and its effects. “Different kinds of employees respond differently to equity compensation.”
The 2019 Worker Cooperative State of the Sector is a report on worker-owned business in the United States. This report, a co-production of Democracy at Work Institute and the US Federation of Worker Cooperatives, draws upon the latest developments in the field. It includes an updated map of metro areas home to concentrations of worker … Read More
Here, Employee-Owned S Corporation of America (ESCA) provides a variety of videos focused on Employee Ownership, including videos capturing “Faces of Employee Ownership,” videos featuring specific companies, and short introductory and informational videos.
The most successful ESOP companies have one thing in common. Their employees are not just motivated and engaged, they are actively engaged in structured opportunities to identify problems and generate new ideas. Open doors are not enough; you need a system that not only makes this possible but makes it part of people’s jobs. This … Read More
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
In this short video, Dr. Daphne Berry describes why she teaches her students about worker cooperatives and participatory ESOPs.
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.
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
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
The first comprehensive analysis of Department of Labor ESOP investigations ever conducted, plus practical advice from experts.
Work organizations are commonly studied as sites that produce and reproduce inequality. But we know much less about how organizations promote equality. This article examines efforts to broaden access to power, opportunity, and resources in Hotel Bauen, a worker-recuperated business that was converted from a privately-owned company into a worker-run cooperative. Drawing on extensive ethnographic … Read More
Using novel compensation data from two technology organizations that have been recognized as leaders for their gender equality efforts, we show that even when organizations are taking active steps to reduce gender inequality (and thus, likely have the best of intentions), pay gaps between female and male employees continue to exist. Specifically, we find that … Read More
In the 20th century, access to capital was the principal source of economic advantage. The business organizations that dominated the developed economies were those that excelled at acquiring large amounts of capital and deploying it productively to produce the steel, concrete, fuel, transportation and other physical materials that drove economic growth in that period. My … Read More
The employee stock-ownership plan, or ESOP, is one of the most powerful legal innovations in recent US history. Since its introduction in the mid-1970s, millions of employees have benefited from being co-owners of the companies where they work. But ESOP formation has slowed in recent years, and it has come with shortcomings. A new generation … Read More
The mainstream economic theory that guides corporations in the US only works if markets are perfectly efficient. This flawed theory has led to corporate decision-making that centers shareholders above all else, including other stakeholders (e.g., workers), long-term business growth, and economic health. This shareholder-first ideology is referred to as “shareholder primacy,” which does not reflect … Read More
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?