Sustainability in the 21st Century
For the last several years, there has been a constant and very predictable discussion taking place regarding the sustainability of ESOP companies…
Section 1042: A Guide to Floating Rate Notes
Floating rate notes (FRNs) are bonds that have a variable coupon that is pegged to a reference rate, typically LIBOR, plus a fixed spread. There are several variations of FRNs, but this article will focus on those utilized to fulfill IRC Section 1042 requirements.
Capitalism for Everyone: Encouraging Companies to Adopt Employee Ownership Programs and Broad-Based Profit Sharing
When a company does well, so should its workers. American workers have helped the economy grow by becoming more productive. Yet, even as productivity has increased, many middle- and working-class households have experienced stagnant wages and declining household incomes over the past few decades. This means workers currently receive only a small share of the … Read More
Succession at Berrett-Koehler Publishers: Institutionalizing the “BK Way” and Protecting BK Values for Future Success
The Berrett-Koehler (BK) case highlights the efforts of a competitively successful, mission-driven, socially responsible publishing company to preserve its values, culture and practices while ensuring continued future success. The case provides an opportunity to cover corporate governance topics such as: ownership structures, shareholder relations, CEO and organizational succession planning, and board roles and responsibilities.
Atlas Container Corporation: Thinking Outside the Box
To survive, Atlas changed from an external to an internal growth strategy. The smoothness of the transition could at least be partially attributed to a set of internal strategies that were unusual for a commodity/cost-driven industry. They included democratic governance and employee ownership…
ESOP and a New Wave of Local Awareness
By taking the great example of regional ESOP promotion pioneers, engaging the University of California in the effort and working to engage other educational institutions as well as leaders in business and the local employee ownership community, we believe that it will be very possible to build strong regional support for the idea that communities ought to be the most active supporters of employee ownership…
Beyster Startup Toolkit: Sharing Equity Ownership
Ultimately, the success of your venture will be determined not by your efforts alone but by the performance of the cast of people — employees, partners, or associates — that you assemble. So, if there is a strategy that can help you get more out of the people on whom you depend and also boost your organizational horsepower, you owe it to yourself to take a serious look. A policy of sharing equity with employees that is designed and used wisely can be just that strategy.
Why Are ESOPs Prevalent in Manufacturing and Construction Industries?
Two of the most common industries to have established ESOPs are construction and manufacturing, combining to make up 35 percent of the 1,600 companies represented by the ESOP Association…
Employee Ownership and Governance: The Carris Companies Making Change Impacting the Whole
William H. (Bill) Carris set a deliberate purposeful course for the whole system change that he deeply desired for his employees. The Carris transformation, innovative in its own right, provides examples of change from being traditionally owned, managed and governed to having shared ownership, participatory management and shared governance by the whole…
How Equal Exchange Aligns Our Capital with Our Mission
In the wake of this cooperative’s recently concluded $4M stock offering, Equal Exchange created a single document that explains all of our unorthodox capital model…
Can We Do It Ourselves?
Can We Do It Ourselves focuses on economic philosophy with an emphasis on the concept of economic democracy. The film helps viewers understand the difference between a market economy in which consumer demand drives a company’s supply of goods and services, and a capitalist economy in which private owners control production and hold a right to … Read More
Case Studies: Business Conversions to Worker Cooperatives: Insights and Readiness Factors for Owners and Employees
How does a business go about transitioning —“converting”— to a worker-owned cooperative? This report provides illustrations with case studies of businesses that have converted and highlights key lessons from those companies’ experiences. The report categorizes conversions into four types: Type I: Owner sells to existing employees with the intention of remaining with the company; Type … Read More
Critical Mass Radio Show Featuring Keith Molchan and Martin Staubus
This Critical Mass Radio Show discusses why, when and how business owners should choose the ESOP path as the correct succession strategy…
Improbable Schweitzer Engineering ESOP Story: Growth Company That Stayed Put
Peoria, Ill., without Caterpillar (CAT)? Benton Harbor, Mich., without Whirlpool (WHR)? Columbus, Ind., without Cummins Engine (CMI)? One of America’s under-appreciated relationships is the one between smaller cities and bigger companies, an often-happy exchange of quality-of-life for the combination of well-paying and skilled jobs, economic growth and stability, and corporate generosity to support cultural and … Read More
Dependency, Poverty and Employee Ownership
In today’s economy, some employees live paycheck to paycheck and are unable to save for a rainy day, let alone retirement. However, an increasingly utilized business model may yield part of the solution. Employee Stock Ownership Plans (ESOPs) are a promising alternative to traditional business models…
Harrell Remodeling ESOP Company Profile
Harrell Remodeling, Inc. (HRI) is the result of a young woman’s belief in the ideas that good fortune comes from hard work; that anything is possible with enough commitment; that listening to and serving the needs of others is the only correct business model and that thoughtful, methodical planning is a good thing – not a handicap.
J. Robert Beyster’s Spirit Lives On
In 1986, Dr. Beyster created the Foundation for Enterprise Development (FED) to assist companies and individuals who were interested in furthering the concept of employee ownership, a core principle of Dr. Beyster’s entrepreneurial philosophy…
Democratic Capitalism
Course Description: The corporation is a controversial institution. It is the central institution that introduces us to the concept of capitalism. Among its virtues are the provision of jobs for employees and wealth for owners.
Teaching and Learning Guide for “Gender In/equality in Worker-owned Businesses”
This teaching and learning guide accompanies the article “Gender In/equality in Worker-owned Businesses,” which reviews existing literature on gender in businesses with employee stock ownership plans, worker cooperatives, and communes. Worker ownership has attracted renewed interest as a possible solution to the social and economic problems confronting our society. In worker-owned businesses, workers have greater … Read More
Don’t Wait for a Crisis, Fix it Now
When things go wrong at work, as they occasionally do, a common first reaction is to look for the culprit(s). This can lead to punishment which may result in the ‘evildoer(s)’ being severely reprimanded, or even terminated. Unfortunately, not only does the problem often remain unsolved, the organization is left with another challenge of replacing a person or two. There may be a better way that doesn’t result in a lose-lose situation…
The Fiduciary Trustee’s Role in ESOP Governance
In this issue, we close the loop on the triangular governance structure that supports ESOP companies and discuss the role of the ESOP itself as reflected in the duties and functions of the ESOP fiduciary (the trustee).
Deck the Malls!
A tale of entrepreneurship – and a leading holiday decoration company becomes employee owned…
Opinion: Looking for the Perfect Buyer?
With all the news about company bankruptcies, increased government regulations, higher equipment costs and economic uncertainty, some motor-carrier owners are looking for options…
Millionaire Grocery Clerks: The Amazing WinCo Foods Story
In Corvallis, Oregon, a couple miles north of the Oregon State University campus, sits a WinCo Foods discount supermarket and, unless you’re in need of groceries, you might drive by without noticing it. I assure you, however, it’s an extraordinary building, a laboratory of capitalism worthy of pilgrimages by the world’s great business schools. It … Read More
Nypro Inc. (A): The Employee Stock Ownership Plan (ESOP)
Nypro, Inc., a global leader in manufactured precision plastic products headquartered in Clinton, Massachusetts, had one of the largest employee stock ownership plans in the United States and was often held up as an example of best practices in that area. However, in early 2012, its president and chief executive officer became increasingly concerned that … Read More