The Straight Scoop on ESOPs: Why Is This Employee Benefit Plan So Popular in the Engineering Industry?
Why is this employee benefit plan so popular in the engineering industry?
Why is this employee benefit plan so popular in the engineering industry?
Turning workers into shareholders improves corporate performance, or so advocates of employee ownership maintain. Their logic is simple: workers with a stake in their company’s future are more likely to take a long-term view, which translates into higher productivity and other gains.
An increasing number of engineering firms are adopting ESOPs because of their many benefits. “We’re seeing a resurgence in them,” says Matheson, managing director of Matheson Financial Advisors in Falls Church, Va. “There’s a growing trend.”
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In the wake of the spectacular bankruptcies of Enron, United Airlines, and Polaroid, employee stock ownership plans have come under intense media scrutiny during the past year. The staggering losses of employees’ retirement savings have prompted pundits to predict the demise of ESOPs, and politicians to call for regulatory overhaul.
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