This chapter describes how ESOP companies can align expectations and build a culture of ownership; reprinted from “Selling to an ESOP, Sixth Edition.”
In 1994 United Airlines became the largest employee majority-owned enterprise in the United States, with various groups of employees – most represented by unions – having purchased 55% of its stock in exchange for various concessions. The employees accepted pay cuts and made other concessions, but were also granted representation on the company’s board of directors…[newline]
Assessing the applicability of employee stock ownership plans for a family firm requires a basic understanding of their characteristics, followed by a careful analysis of the costs and benefits in the specific case. This note provides general information and offers guides for the critical, specific questions an adviser or owner should ask.