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…
This Critical Mass Radio Show discusses why, when and how business owners should choose the ESOP path as the correct succession strategy…
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…
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).
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
Several recent legal events have given the ESOP community a great deal to consider…
This Review looks at ‘short-termism’ within British business: the pressure to focus on short-term results to the possible detriment of the long-term health of a company, or even a whole industry. The investigation confirmed that short-termism constrains the ambition of UK business, holding back its development and inhibiting economic growth…
Any business owner who evaluates their succession options without investigating the concept of an employee stock ownership plan will be making a mistake. What is an ESOP, and how does it work?
Looking around at the wreckage left in the wake of the world economy’s latest crisis, veteran business journalist Marjorie Kelly noticed that some institutions were left relatively unscathed. What did they have in common? The key, Kelly realized, is seemingly obscure: ownership. Prominent among the survivors were organizations that combined the flexibility of traditional private ownership with a focus on the common good…
Flexpak Corporation, has been a leader in providing thermoforming and packaging services to its clients for many years. The employee-owned company, founded in 1974 by Donald Bond is headquartered a few minutes from downtown Phoenix, Ariz.
Ronald J. Gilbert, President of ESOP Services, Inc,. discusses the leveraged Employee Stock Ownership Plan (ESOP), highlighting the mechanics, advantages, and financing sources. ESOP Services, Inc.’s professionals are experienced in preliminary analysis, plan and financial transaction design, implementation, financing, ESOP termination and litigation support.
This technical note explains how agricultural cooperatives are structured and financed, as well as how they form partnerships with one another and other elements of the food system.
Rising inequality of income and power, along with recent convulsions in the finance sector, have made the search for alternatives to unbridled capitalism more urgent than ever. Yet few are attempting this task—most analysts argue that any attempt to rethink our social and economic relations is utopian. Erik Olin Wright’s major new work is a … Read More
The case focuses on the vice-president and regional head of corporate banking for Noor Islamic Bank in Dubai as she arrives in the United States to promote the first global network for women in Islamic banking and finance, known as Durra.
Netflix was among a small group of Silicon Valley companies to emerge from the technology bubble of the late 1990s a clear winner in terms of growth, market share, and profitability. That Netflix was able not only to prevail over this competition but also to thrive was largely attributable to the culture of freedom and … Read More
Curriculum material for Beyster Institute’s Employee Ownership Management Program, a seminar presented at the Rady School, UCSD.
We examine how employee ownership is used to solve the agency problem between institutional investment management firms and employees.
There are three reasons for promoting mutual building societies: they are less prone than banks to pursue risky speculative activity; a mixed system produces a more stable financial sector; and a stronger mutual sector enhances competition within the financial system.
Through this article, we will demonstrate how the creation of private insurance coverage for ESOPs would help to eliminate, or at least reduce, the problem of the large downside risks associated with these quasi-retirement plans. In order to fully develop this assertion and the reasoning behind it, we will explore how ESOPs fit within ERISA. … Read More
What is an ESOP? Employee Stock Ownership Plans, or ESOPs, were designed as a way to put ownership into the hands of American workers.
This paper explores how share repurchases affect the extant employee compensation contracts and offer a new explanation for the popularity of stock buybacks.
Should Wachovia Bank and Trust lend the ESOP of Starrett the money to purchase shares? The required tasks involve a standard credit analysis and the valuation of Starrett’s shares.
Fair trade and beverage pioneer, Equal Exchange, has teamed up with socially progressive bank, Wainwright Bank, to raise capital, protect its independence, and create a new financial product for investors.
ESOPs are part of a broader approach to expanded capital ownership, broader prosperity, and economic justice known as binary economics. Binary economics was first advanced by Louis Kelso, who is also widely known as the inventor of the ESOP.
The authors investigate how worker-owned and capitalist enterprises differ with respect to wages, employment, and capital in Italy, the market economy with the greatest incidence of worker-owned and worker-managed firms.
The footnote disclosure for eBay, Inc. in 2000 indicates that if the company had accounted for employee stock options under the fair value method, its reported profit of $48 million would have been a loss of $91 million.